The ringgit opened slightly lower against the US dollar on Tuesday, reflecting cautious sentiment in the global currency market. At 8.03 am, the local note eased to 4.4595/4680 from Monday's close of 4.4570/4625.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the US dollar's strength to political uncertainty in France, where a motion of no-confidence was tabled over disagreements on the budget.
"The ringgit could remain range-bound against the US dollar as market sentiments remain wary of the US Federal Reserve's (Fed) future outlook. Threats of higher tariffs could raise inflation next year, potentially influencing the pace of monetary easing," he told Bernama.
Dr Afzanizam also noted comments from Fed governor Christopher Waller, who suggested he might favour rate cuts at the Fed's December meeting, increasing the likelihood of further monetary easing.
Against a basket of major currencies, the ringgit mostly traded higher. It rose against the British pound to 5.6426/6534 from 5.6613/6683 and edged up against the euro to 4.6807/6896 from 4.6856/6914. However, it fell against the Japanese yen to 2.9784/9842 from 2.9648/9687.
The ringgit's performance against ASEAN currencies was mixed. It weakened against the Singapore dollar at 3.3136/3202 from 3.3113/3156 and against the Philippine peso at 7.60/7.62 from 7.59/7.61.
Meanwhile, it advanced slightly against the Thai baht at 12.9134/9462 from 12.9196/9423 and eased against the Indonesian rupiah to 280.3/281.0 from 280.1/280.6.
