The ringgit closed higher against the US dollar amid concerns over market sentiment over the independence of the Federal Reserve (Fed) which continues to be pressured by the Washington government regarding its monetary policy stance.
At 10:42 am, the ringgit opened at 4.0540, strengthening 0.15% against the US dollar since opening early Tuesday trading in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid explained that concerns over the independence of the Fed were seen to have an impact on the strengthening of the US dollar, which saw the US Dollar Index (DXY) decline 0.24% to 98.894 points.
He also stated that the continued pressure from United States (US) President Donald Trump on the Fed had affected investors' perceptions in assessing the direction of the US dollar.
The tension stemmed from the central bank's refusal to ease monetary policy.
Meanwhile, this development is seen as potentially driving the local currency's position in the short term with the ringgit expected to trade in the range of RM4.05 to RM4.06 against the US dollar today.
At the opening, the ringgit traded stronger against a basket of other major currencies.
It rose slightly against the euro to 4.7345/7467 from 4.7435/7499, rose against the Japanese yen to 2.5677/5747 from 2.5717/5754 previously, but depreciated against the British pound to 5.4641/4782 from 5.4630/4704.
The ringgit was also traded higher against ASEAN currencies.
It rose against the Indonesian rupiah to 240.7/241.4 from 240.9/241.3, rose against the Singapore dollar to 3.1558/1644 from 3.1567/1613 and strengthened against the Thai baht to 12.9852/13.0267 from 12.9961/13.0195 previously.
However, it remained unchanged against the Philippine peso at 6.85/6.87 from 6.85/6.86 yesterday.
