Market sentiment remains cautious as the ringgit opens higher against the US dollar yesterday, despite the ongoing uncertainties surrounding US import tariff policies. The Malaysian note rose to 4.4085/4215 against the greenback from Monday’s close of 4.4100/4160. This move reflects a shift in market sentiment, with investors seeking alternative safe havens in response to the ongoing tariff situation. The US Dollar Index (DXY) has dropped to 99.640 points, indicating a decrease in investor confidence. The drop in the DXY has resulted in a decrease in the value of the US dollar, which in turn has led to an increase in the value of the Malaysian ringgit. As a result, the ringgit has strengthened against several major currencies, including the Japanese yen, euro, and British pound. However, the ringgit’s performance against ASEAN currencies is mixed. It has strengthened against the Thai baht to 13.1182/1745 from 13.1481/1754, and improved against the Singapore dollar to 3.3494/3595 from 3.3506/3556. On the other hand, the ringgit was little changed versus the Indonesian rupiah at 262.5/263.5 from 262.6/263.2, and was flat against the Philippine peso at 7.72/7.75 from 7.72/7.74. The market’s cautious sentiment is attributed to the ongoing inconsistencies in US import tariff policies, which has led to difficulties in assessing the macroeconomic impact. **Market Outlook**
The on and off tariff situation has made it challenging for investors to predict the macroeconomic impact on the ringgit. The US Dollar Index (DXY) has dropped to 99.640 points, reflecting a shift in investor sentiments. In fact, the ringgit has been trading higher against the US dollar for several days, reflecting the market’s cautious sentiment. **Key Factors**

• US import tariff policies remain uncertain, making it difficult for investors to predict the macroeconomic impact on the ringgit.
• The US Dollar Index (DXY) has dropped to 99.640 points, reflecting a shift in investor sentiments.
• The drop in the DXY has resulted in a decrease in the value of the US dollar, which has led to an increase in the value of the Malaysian ringgit.

US Dollar Index (DXY) points decline

**Central Bank Outlook**
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the ongoing tariff situation has made it difficult to assess the macroeconomic impact on the ringgit. “Gold prices remain elevated, with spot gold at USD3,227.40 per ounce – up 23 per cent from USD2,624.50 at the start of the year – suggesting investors are turning to the precious metal amid rising uncertainty,” he told Bernama. Dr Mohd Afzanizam expects the ringgit to hover between MYR4.40 and MYR4.41 yesterday. This suggests that the market is cautiously optimistic about the ringgit’s performance in the coming days.

“Market sentiment is cautious, and investors are seeking alternative safe havens. The ringgit is likely to continue its upward trend, but with a high degree of uncertainty.” – Dr Mohd Afzanizam Abdul Rashid, Bank Muamalat Malaysia Bhd Chief Economist

1. The ringgit has strengthened against several major currencies, including the Japanese yen, euro, and British pound.
2. The ringgit has improved against several ASEAN currencies, including the Thai baht, Singapore dollar, and Philippine peso.
3. The ringgit has been trading higher against the US dollar for several days, reflecting the market’s cautious sentiment.

In conclusion, the ringgit has opened higher against the US dollar, reflecting the market’s cautious sentiment amid ongoing tariff uncertainties. The ringgit’s performance against several major currencies is mixed, with it strengthening against some and trading flat against others.