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THE ringgit opened stronger against the US dollar on Tuesday, lifted by upbeat sentiment stemming from recently signed Malaysia-US trade agreements that have bolstered investor appetite for the local currency.
At 8am, the ringgit appreciated to 4.2040/2140 against the US dollar from 4.2085/2135 at Monday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the newly signed trade pacts were expected to have a favourable impact on the ringgit as Malaysia continued to nurture robust international ties.
“The nation’s foreign and trade policies are consistently geared towards promoting greater global integration, especially in areas related to the supply chain,” he told Bernama.
He added that the US dollar index had declined by 0.17 per cent to 98.783 points amid optimism that the United States and China could reach a positive outcome in their upcoming trade discussions, ahead of a scheduled meeting between their leaders on Thursday.
Market sentiment was also buoyed by expectations that the US Federal Reserve would implement a 25-basis-point interest rate cut on Wednesday.
“In light of the market optimism, the ringgit could make another attempt to break the RM4.20 level today,” Mohd Afzanizam said.
At the opening, the ringgit traded mostly higher against major currencies. It strengthened against the Japanese yen to 2.7538/7606 from 2.7550/7582 and appreciated versus the British pound to 5.6077/6211 from 5.6158/6225. However, it eased slightly against the euro to 4.8981/9097 from 4.8974/9032.
The ringgit also traded firmer against most ASEAN currencies. It edged up against the Singapore dollar to 3.2433/2513 from 3.2460/2502, rose marginally against the Indonesian rupiah to 252.9/253.6 from 253.1/253.6, and strengthened against the Philippine peso to 7.13/7.16 from 7.14/7.16 previously.
However, the local note slipped slightly against the Thai baht to 12.8767/9145 from 12.8633/8837 at Monday’s close. - October 29, 2025