Kuala lumpur: The ringgit closed higher against the US dollar on Tuesday, amid a mixed performance in regional currencies, as investors adopted a wait-and-see approach ahead of the United States (US) tariff negotiation deadline, an analyst said. At 6 pm, the ringgit rose to 4.2300/2370 against the greenback, compared with Monday’s close of 4.2320/2365.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that there is an impression that the tariff negotiations could extend beyond the August 1 deadline. He highlighted that the performance of Asian currencies against the US dollar was mixed, with the Chinese yuan, Thai baht, and Korean won depreciating, while the Indonesian rupiah and the Philippines peso showed strength. The ringgit opened stronger in the morning, reaching RM4.2273 against the US dollar, but hovered around RM4.2325 in the afternoon session.

Meanwhile, Stephen Innes, managing partner at SPI Asset Management, commented that the ringgit traded sideways as local traders remained cautious. He emphasized that a negotiated compromise with Washington could lead to modest gains, particularly if the tariff rate is lower than expected. Innes remarked that although traders are currently in a holding pattern, the calm is unlikely to last, as August 1 represents a significant macroeconomic event for Asia.

At the close, the ringgit traded lower against a basket of major currencies. It fell against the Japanese yen, British pound, and euro, with respective rates at 2.8690/8739, 5.7088/7183, and 4.9512/9594 compared to Monday’s close. Additionally, the ringgit weakened against most ASEAN currencies, depreciating against the Singapore dollar, Thai baht, and Philippine peso. However, it showed a slight increase against the Indonesian rupiah, closing at 259.1/259.7.