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THE ringgit began Tuesday’s trading session on a stronger footing against the US dollar, supported by a softer greenback as investor concerns grew over declining demand for US assets.
At 8am, the local currency strengthened to 3.9250/9340 against the US dollar, improving from Monday’s closing level of 3.9325/9375.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US dollar came under pressure following reports that Chinese authorities had advised domestic financial institutions to reduce their holdings of US Treasury bonds.
“This has led to a softer US dollar, with the US Dollar Index (DXY) declining by 0.79 per cent to 96.865 points,” he told Bernama.
He said the move was driven mainly by concerns over risk concentration and increased market volatility.
According to the latest available data, China’s holdings of US Treasury bonds stood at US$682.6 billion as of November 2025, significantly below the peak of US$1.3 trillion recorded in July 2011.
“Yesterday, the ringgit closed higher against the US dollar. On that note, the ringgit is likely to remain firm at around RM3.92 to RM3.94 due to weakness in the US dollar,” he added.
Despite gains against the greenback, the ringgit traded mostly lower against a basket of major currencies at the opening.
It depreciated against the British pound to 5.3698/3821 from 5.3482/3550 previously, slipped against the euro to 4.6723/6830 from 4.6647/6707, and weakened against the Japanese yen to 2.5138/5197 from 2.5104/5137 at Monday’s close.
Against regional peers, the ringgit was largely stronger, although it edged down against the Singapore dollar to 3.1001/1077 from 3.0979/1021 previously.
The local note appreciated against the Philippine peso to 6.71/6.73 from 6.72/6.74, strengthened against the Indonesian rupiah to 233.5/234.2 from 234.0/234.4, and rose versus the Thai baht to 12.5813/6207 from 12.5876/6101. - February 10, 2026