Kuala Lumpur: The ringgit opened higher against the US dollar, supported by positive sentiment following developments in trade tariffs between key global economies, including China and the United Kingdom (UK), said an economist. At 8 am, the ringgit local note improved to 4.2715/2905 versus the greenback compared to Thursday's close of 4.2780/2830.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted optimism surrounding the trade talks between the US and China, anticipating positive outcomes this week. This optimism is based on the recent trade deal between the US and the UK, which resulted in the reduction of tariffs on cars and steel. However, the 10 per cent tariff remains unchanged, indicating that the effects of tariff shocks may persist in the coming months.

Meanwhile, Mohd Afzanizam highlighted that the US Dollar Index (DXY) rose by 1.03 per cent to 100.64 points, while the US Treasury yields for 2- and 10-year notes also saw increases of 10 and 11 basis points to 3.87 per cent and 4.38 per cent, respectively. He further stated that the ringgit might undergo further correction due to the rising demand for the US dollar in light of these developments.

At the opening, the ringgit traded higher against a basket of major currencies and ASEAN currencies. It increased versus the Japanese yen to 2.9269/9401 from 2.9534/9571 at Thursday's close, gained vis-a-vis the euro to 4.7960/8174 from 4.8264/8321 yesterday, and rose against the British pound to 5.6555/6806 from 5.6769/6835 previously.

Against its ASEAN peers, the ringgit appreciated versus the Singapore dollar to 3.2848/2999 from 3.2984/3025 on Thursday's close and rose against the Thai baht to 12.9216/9885 from 13.0189/0404 yesterday. The local note also inched up against the Philippine peso to 7.68/7.72 from 7.69/7.70 yesterday and edged up vis-a-vis the Indonesian rupiah to 258.8/260.1 from 259.2/259.6 previously.