The ringgit opened the week in positive territory, hitting RM4.39 as uncertainty over US trade policy weighed on the greenback and amid ongoing negotiations between Japan and the European Union.
At 10am, the ringgit was at 4.3960, up 0.32% against the US dollar from its close of 4.4100 last Friday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said uncertainty over trade policy appeared to have weakened the US dollar, which usually acts as a safe haven for investors when the market perceives high risk.
He added that this sentiment led to an increase in emerging market currencies including the ringgit.
He added that the US Dollar Index (DXY) continued to decline, hovering around 98.827 amid ongoing uncertainty over US tariffs.
In addition, President Donald Trump's comments that added weight to the US Fed's interest rate decision and the potential dismissal of Chairman Jerome Powell have fueled policy uncertainty.
Based on the decline in DXY, USD-MYR could see an upward trend against the dollar today.
Meanwhile, the ringgit traded lower against a group of major currencies.
It weakened against the Japanese yen to 3.1066/1240 from 3.0971/1028 at last Friday's close, depreciated against the British pound to 5.8539/8859 from 5.8516/8616, and fell against the euro to 5.0342/02.013 from 5.0342/0613.
The local currency recorded mixed performance against Asean currencies.
The ringgit strengthened against the Indonesian rupiah to 260.4/262.0 from 261.2/261.8 previously and traded stronger against the Philippine peso at 7.74/7.79 from 7.77/7.79.
However, it depreciated against the Thai baht to 13.1989/2805 from 13.1815/2154 at last Friday's close and retreated against the Singapore dollar to 3.3625/3817 from 3.3562/3601 at yesterday's close
