The ringgit opened slightly higher against the US dollar on Tuesday, supported by better buying sentiment for the domestic currency despite a stronger US Dollar Index (DXY).
At 10.15am, the ringgit was at 4.4800, recovering 0.16% against the USD from its close of 4.4870 at the end of Monday.
UOB Kay Hian Wealth Advisors Head of Investment Research Sedek Jantan said that the DXY rose 0.45% overnight to cross 108 and is nearing a two-year high.
It came as markets continued to digest last week's Federal Open Market Committee (FOMC) meeting which signalled a more measured pace of interest rate cuts in 2025.
He added that the Asian Dollar Index opened higher but the MSCI Emerging Markets Currency Index fell 0.1%, dragged down by declines in the Brazilian real and South African rand.
Meanwhile, the ringgit strengthened against several major currencies.
It appreciated against the Japanese yen to 2.8537/2.8602 from Monday's close of 2.8636/2.8673, rose against the British pound to 5.6219/5.6344 from 5.6384/5.6453 and edged higher against the euro to 4.6668/4.6772 from 4.6692/4.6749.
The local note performed mixedly against Asean currencies.
It rose against the Singapore dollar, trading at 3.3051/3.3127 from 3.3095/3.3138 previously and strengthened against the Thai baht to 13.0772/13.1186 from 13.1137/13.1360.
However, it remained unchanged against the Indonesian rupiah at 276.9/277.7 from 276.9/277.5 and against the Philippine peso at 7.67/7.69 from 7.67/7.68.
