The ringgit opened higher against the US dollar on Tuesday as traders await details of the US tariff implementation.
At 9.30am, the ringgit was at 4.4560, up 0.18% against the US dollar from its close of 4.4640 on Monday.
Bank Muamalat Malaysia Bhd Chief Economist Afzanizam Rashid said the S&P 500 and Nasdaq fell sharply overnight, down 1.76% and 2.64% respectively as the US prepared to impose higher import tariffs on Canada, Mexico and China from today (Tuesday).
While the US ISM Manufacturing Index remained relatively stable at 50.3 points in February from 50.9 in January, the New Orders sub-index fell sharply to 48.6 from 55.1, suggesting demand could lead to lower production.
He noted that the US dollar index declined 0.98% to 106.557 as signs of a slowing US economy increased expectations that the US Fed might cut interest rates to stabilise growth.
Against this backdrop, he said USD/MYR could hover around its immediate support level of 4.45.
Meanwhile, the ringgit weakened against major currencies.
It fell to 5.6528/5.6782 against the British pound from 5.6394/5.6444 at Monday's close, eased to 4.6663/4.6872 against the euro from 4.6586/4.6628, and edged lower against the Japanese yen to 2.9786/2.9922 from 2.9683/2.9711.
Local currencies, mostly higher against Asean currencies.
It rose to 3.3046/3.3200 against the Singapore dollar from 3.3130/3.3163, strengthened to 270.0/271.3 against the Indonesian rupiah from 270.8/271.2 and strengthened to 7.68/7.72 against the Philippine peso from 7.71/7.
However, it depreciated to 13.0613/13.1339 against the Thai baht from 13.0576/13.0762.
