The ringgit opened higher at the start of the week on expectations that Malaysia will be the least affected country when the US government implements its retaliatory tariffs on April 2.
At 9.30am, the ringgit was at 4.4260, down 0.16% against the US dollar from its close of 4.4180 at the close last Friday.
Bank Muamalat Malaysia Bhd Chief Economist Afzanizam Rashid said the ringgit moved higher this morning as market participants await the implementation of the US government's tariffs.
He added that market participants will examine the details of the retaliatory tariffs and how they will affect each country's economy.
The threat of tariffs is likely to trigger slower growth and it requires a swift policy response from global central banks as a line of defense for the economy. Such thinking will create a defensive mode among traders and investors, leading to higher demand for the safe haven currency the US dollar.
In that sense, Malaysia could be among the least affected countries.
The ringgit traded higher against a basket of major currencies.
The local currency rose against the British pound to 5.7062/5.7158 from 5.7151/5.7203 recorded last Friday.
It rose further against the Japanese yen to 2.9500/2.9552 from 2.9574/2.9602 last Friday and was little changed against the euro at 4.7842/4.7923 from 4.7843/4.7886.
The local note also strengthened against Asean currencies.
It rose against the Singapore dollar to 3.3075/3.3134 from 3.3081/3.3114 at the previous close, was almost unchanged against the Philippine peso at 7.70/7.72 from 7.70/7.71, rose against the Indonesian rupiah to 267.5/268.1 from 267.7/268 and the Thai baht to 13.0235/13.0545 from 13.0436/13.0608 previously.
