The ringgit extended its gains to open higher against the US dollar on Monday as the US dollar weakened to a three-year low amid escalating US-China trade tensions.
At 10.15am, the ringgit was at 4.4290, down 0.20% against the US dollar from its close of 4.4200 late on Friday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) had fallen below the 100-point mark, a move he described as disconcerting given the increased risk aversion to trade and tariff uncertainties.
He noted that while US President Donald Trump announced a delay in tariffs on smartphones and computers over the weekend, market sentiment remained fragile.
The USD/MYR pair is likely to remain in a narrow range albeit with a slight positive bias as the DXY declined significantly.
The ringgit also traded higher against several major currencies.
It strengthened against the Japanese yen to 3.0761/0822 from 3.0952/1000, rose against the euro to 5.0123/0220 from 5.0207/0281, and rose against the British pound to 5.7820/7932 from 5.7849/7932.
Meanwhile, the local currency was mixed against its Asean counterparts.
It was marginally higher against the Singapore dollar at 3.3491/3566 from 3.3495/3549, but weakened against the Thai baht to 13.1778/2141 from 13.1599/1902.
The local currency was little changed against the Indonesian rupiah at 263.0/263.7 compared to 263.1/263.6 previously, and remained firm against the Philippine peso at 7.75/7.77.
