The ringgit recorded a positive increase against the US dollar as the US Dollar Index (DXY) opened weaker after tensions between the United States (US) and the European Union (EU) escalated.
The fall was due to new statements from the US President Donald Trump administration on Greenland.
At 10:23 am, the ringgit opened at 4.0500, strengthening by 0.05% against the US dollar since opening early Tuesday in the Asian session.
Bank Mualamat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid informed that the DXY index declined by 0.35% to 99.050 points, thus marking a clear shift to risk-off sentiment with gold emerging as a safe haven asset for investors.
He also stated that the International Monetary Fund (IMF) has raised its 2026 global Gross Domestic Product (GDP) growth forecast by 0.2% to 3.3%.
The development was supported by stronger investment in artificial intelligence (AI), accommodative monetary conditions and fiscal stimulus which is expected to help offset weaknesses in trade policy.
At the opening, the ringgit traded higher against a basket of other major currencies.
It rose against the Japanese yen to 2.5591/5656 from 2.5657/5692 yesterday, rose against the euro to 4.7109/7225 from 4.7100/7159 and rose slightly against the British pound to 5.4313/4448 from 5.4321/4388 previously.
The ringgit also traded stronger against ASEAN currencies.
It strengthened against the Singapore dollar to 3.1491/1571 from 3.1521/1562, rose against the Indonesian rupiah to 238.7/239.4 from 239.0/239.3 and gained against the Thai baht to 12.9454/9886 from 12.9623/9845.
However, it remained unchanged against the Philippine peso at 6.81/6.83 from 6.81/6.82 previously.
