The ringgit extended its gains against the US dollar since Monday's trading and is set to test the support level around RM4.36 for now.
At 10am, the ringgit was at 4.3780, down slightly against the US dollar from its close of 4.3670 at the end of Monday's trading.
Bank Muamalat Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid said the financial market appeared to be growing more nervous amid President Trump's continued moves to undermine the US Fed's independence in conducting monetary policy.
He added that US stocks plunged again as the US President continued his threats to Jerome Powell by insisting there was no inflation and the Fed funds rate needed to be lowered.
The US Dollar Index (DXY) fell almost one percent to reach 98.278 points.
While there may be a view that the Fed is always late in planning, there should be no attempt to undermine its independence. This is an extraordinary situation that has exacerbated the already gloomy outlook following the tariff moves.
Meanwhile, the ringgit strengthened against a basket of major currencies.
It rose against the Japanese yen to 3.0913/1121 from 3.1046/1095 at Monday's close, rose against the euro to 5.0139/0473 from 5.0408/0483, and rose against the British pound to 5.8266/8654 from 5.8513/8601.
The local note also outperformed its Asean counterparts.
It strengthened against the Singapore dollar to 3.3372/3599 from 3.3515/3570, rose against the Philippine peso to 7.69/7.74 from 7.71/7.73 and rose against the Thai baht to 13.1187/2184 from 13.1914/217.
However, the ringgit was almost unchanged against the Indonesian rupiah at 259.1/260.9 compared to 259.8/260.3 previously.
