Kuala Lumpur: The ringgit closed slightly higher against the US dollar today due to a decline in the US Dollar Index (DXY), an analyst noted. At 6 pm, Malaysia’s currency improved to 4.4100/4160 against the greenback, compared to Friday’s close of 4.4200/4265.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, highlighted that the DXY continued its downward path around 99 points today. He expressed uncertainty about whether the DXY would maintain such low levels amidst the ongoing uncertainties regarding import tariffs imposed by the United States. Mohd Afzanizam also mentioned that the US dollar might appreciate as traders seek safe haven assets amid risk aversion, noting that all six DXY components, especially the Japanese yen and British pound, have appreciated against the US dollar.

Stephen Innes, managing partner at SPI Asset Management, remarked that the ringgit has regained momentum, recovering from earlier losses. He attributed this positive trend to a broader risk-on sentiment following US President Donald Trump’s announcement of a 90-day pause on technology tariffs, which has fostered optimism in Malaysia’s technology sector.

In the currency market, the ringgit exhibited mixed performance against major currencies. It appreciated against the Japanese yen and the euro, while it slightly depreciated against the British pound. Among ASEAN currencies, the ringgit mostly traded higher, except against the Singapore dollar, where it saw a slight decline.