The ringgit outperformed its main rival, the US dollar, after the currency continued to decline on concerns over reduced demand for US assets.
At 9:56 am, the ringgit was trading at 3.9220, up 0.25% against the US dollar since opening early Tuesday in Asia.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US dollar had weakened following reports that Chinese authorities were advising domestic financial institutions to reduce their holdings of US Treasury bonds.
He also noted that this situation had caused the US dollar to weaken further with the US Dollar Index (DXY) declining 0.79% to 96.865 points.
Mohd Afzanizam explained that the action was taken following concerns over risk concentration and increasingly volatile market conditions.
Based on the latest data as of November 2025, China's holdings of US Treasuries were worth $682.6 billion, well below the peak of $1.3 trillion recorded in July 2011.
At the opening, the ringgit traded lower against other major currencies.
It declined against the British pound to 5.3698/3821 from 5.3482/3550, depreciated against the euro to 4.6723/6830 from 4.6647/6707 and weakened against the Japanese yen to 2.5138/5197 from 2.5104/5137 previously.
The ringgit was also traded mixed against ASEAN currencies.
It rose against the Philippine peso to 6.71/6.73 from 6.72/6.74, gained against the Thai baht to 12.5813/6207 from 12.5876/6101 and rose against the Indonesian rupiah to 233.5/234.2 from 234.0/234.2.
However, it fell against the Singapore dollar to 3.1001/1077 from 3.0979/1021 previously.
