The ringgit opened stronger against the US dollar in Tuesday's trade amid emerging risk-on mode among investors.
At 10.25 am, the ringgit was at 4.3650 which is a slight recovery against the USD since it closed at 4.3700.
The US Dollar Index (DXY) continued to gain momentum by increasing by 0.45% to 101.63 points.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Afzanizam said the 'risk-off' mode in the market has become widespread and this has led to high demand in safe currency assets such as USD.
Additionally, talk of deflationary concerns in China has left market participants worried about the global economic outlook.
All eyes are on the US consumer price index (CPI) due out on Wednesday, with consensus estimates showing a 2.6% year-on-year increase in August compared to the 2.9% recorded in the previous month.
He said the support and resistance levels for USD/MYR are now placed at RM4.3259 and RM4.4390.
Meanwhile, the ringgit traded mostly higher against a group of major currencies.
It fell against the Japanese yen to 3.0451/3.0537 from 3.0449/3.0482 at Monday's close, improved against the euro to 4.8113/4.8245 from 4.8310/4.8360 yesterday and rose against the British pound from 5.6985/5.7142 to 5.7195/5.7253 previously.
The ringgit is trading high against Asean currencies.
It strengthened against the Thai baht to 12.8652/12.9116 from 12.8666/12.8851 yesterday and rose against the Indonesian rupiah to 282.0/283.0 from 282.6/283.1 previously.
The local currency also rose against the Singapore dollar to 3.3382/3.3479 from 3.3453/3.3490 at Monday's close and rose against the Philippine peso to 7.72/7.75 from 7.74/7.75.
