The ringgit opened stronger against the US dollar today as the currency weakened following the US government's decision to maintain import tariffs on Canada, Mexico and China.
At 9.15am, the ringgit was at 4.4400, up 0.54% against the USD from its close of 4.4635 on Tuesday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) had declined to 105.57, down more than 1%.
Concerns over higher tariffs could slow the economy and prompt the US Fed to adopt a more dovish tone on monetary policy.
He also stressed that traders were setting expectations for three interest rate cuts this year.
However, he warned that the ringgit was likely to continue to be traded cautiously, with USD/MYR fluctuating between RM4.45 and RM4.47.
Meanwhile, the ringgit was mostly trading lower against major currencies.
It strengthened against the Japanese yen at 2.9675/9759 from 2.9956/9989 on Tuesday. However, it weakened against the British pound to 5.6884/7038 from 5.6789/6846 and fell against the euro to 4.7231/7358 from 4.6916/6963.
The local currency was mixed against Asean currencies.
It fell against the Singapore dollar to 3.3227/3322 from 3.3203/3242 and fell against the Thai baht to 13.1963/2453 from 13.1853/2057.
Meanwhile, it strengthened against the Indonesian rupiah to 270.3/271.2 from 271.3/271.8 and increased against the Philippine peso to 7.72/7.74 from 7.69/7.72.
