Kuala lumpur: The ringgit slipped further against the US dollar at the close on Tuesday as investors turned to the greenback to hedge against market volatility amid escalating trade tensions between the United States and China. At 6 pm, the local note eased to 4.2305/2355 against the US dollar from Monday's close of 4.2265/2295.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the DXY index climbed 0.08 per cent to 99.347 points. He mentioned that investors remained wary of the state of trade between the United States and China and the ongoing US government shutdown. Dr Afzanizam Abdul Rashid highlighted the difficulty in assessing the macroeconomic condition in the US due to the absence of key data points and suggested that the US dollar will continue to be in a favorable condition until the government shutdown is resolved.

The report also included President Trump's announcement that the United States will impose a 100 per cent tariff on imports from China, along with restrictions on US tech exports, starting November 1, 2025, or sooner, depending on China's response to trade issues.

While the ringgit weakened against the US dollar, it mostly strengthened against a basket of major currencies. It rose against the euro to 4.8879/8937 from 4.9006/9041 at the previous close and strengthened against the British pound to 5.6118/6184 from 5.6369/6409. However, it edged lower versus the Japanese yen to 2.7808/7843 from 2.7775/7796.

In terms of ASEAN currencies, the ringgit also closed mostly higher. It appreciated versus the Thai baht to 12.8975/9182 from 12.9878/13.0030, ticked up against the Singapore dollar to 3.2512/2553 from 3.2562/2587, and improved against the Indonesian rupiah to 254.8/255.2 from 255.0/255.3 previously. The local note traded flat versus the Philippine peso at 7.26/7.27 from 7.26/7.26.