The ringgit slipped to a lower level after maintaining a stable position for several days following the strengthening of the US dollar as the Fed is expected to take a gradual approach in easing its monetary policy.
At 10.00 am, the ringgit was at 4.3210 which is 0.49% lower against the USD than it closed at 4.3045 on Monday.
Investors maintained a cautious stance by leaning towards safe-haven assets amid uncertainty in the economic outlook.
Federal Reserve Bank of Minneapolis President Neel Kashkari hinted that interest rate cuts will continue slowly in the coming quarters as the Fed nears neutral rates.
In addition, tensions in the Middle East have caused the price of crude oil to continue to rise.
The US Dollar Index (DXY) rose to a high of 104,012 points reflecting strong demand for the US dollar.
However, Malaysia's positive economic growth prospects alongside its fiscal consolidation efforts offer a case for a stronger ringgit going forward.
Malaysia's preliminary gross domestic product (GDP) estimate for the third quarter of 2024, which recorded 5.3%, indicates that the country is on track for strong growth this year and potentially into next year.
Meanwhile, at the beginning of trading, the ringgit showed a better performance compared to several major currencies.
It rose against the Japanese yen to 2.8579/2.8685 from 2.8685/2.8724 and strengthened against the British pound, trading at 5.5890/5.6091 versus 5.6040/5.6112. The local currency also rose against the euro, standing at 4.6553/4.6721 from 4.6687/4.6746.
Compared to Asean currencies, the ringgit showed mixed results.
It gained against the Thai baht, trading at 12.8397/12.8948 from 12.8719/12.8945, and against the Singapore dollar rose to 3.2692/3.2814 from 3.2776/3.2821.
However, it remained almost unchanged against the Indonesian rupiah, standing at 277.6/278.7 from 277.6/278.1 previously and unchanged against the Philippine peso at 7.48/7.51 from 7.48/7.49.
