At 6pm, the local currency inched down to 4.0530/4.0580 against the greenback from 4.0520/4.0570 at Monday’s close.
SPI Asset Management managing partner Stephen Innes said the escalating trade rift between the US and the EU over the status of Greenland has caught markets off guard, as it had not been previously priced into market expectations.
“As a result, the ringgit largely sat out today’s modest bout of US dollar softness, with investors reluctant to add exposure in an increasingly fragile risk environment,” he told Bernama.
Bank Muamalat Malaysia Bhd’s chief economist Afzanizam Rashid said the market sentiment remains cautious, with long-term Japanese government bond (JGB) prices tanking as Japan approaches an election in February, where populist policies are expected to be the main selling points by politicians.
“In addition, the US Dollar Index (DXY) also declined 0.90% to 98.499 points while spot gold prices rose 1.14% to US$4,724.19 per ounce as traders and investors seek refuge in the precious metal,” he added.
However, he noted that domestically, the economic data showed that the Malaysian economy remained fairly resilient in 2025, with the latest export data growing 10.4% in December, up from 7% growth in the preceding month. “At the same time, the inflation rate gradually rose to 1.6% in December, suggesting Bank Negara Malaysia is likely to keep the overnight policy rate (OPR) steady when they meet on Thursday,” he added.
Earlier, the Malaysia External Trade Development Corporation (MATRADE) announced that Malaysia’s total trade in 2025 reached its highest value on record, surpassing the RM3 trillion mark at RM3.06 trillion. The growth was a 6.3% year-on-year increase, with exports exceeding imports to generate a RM151.80 billion trade surplus, said the agency.
The local currency was lower against other major currencies.
It fell versus the euro to 4.7530/4.7588 from 4.7100/4.7159, eased against the Japanese yen to 2.5696/2.5729 from 2.5657/2.5692 and was softer vis-à-vis the British pound at 5.4618/5.4686 from 5.4321/5.4388.
The local currency was also softer against Asean currencies.
It dropped against the Singapore dollar to 3.1602/3.1646 from 3.1521/3.1562, slipped versus the Thai baht to 13.0397/13.0629 from 12.9623/12.9845 and was almost flat vis-à-vis the Indonesian rupiah and the Philippine peso at 239.0/239.4 and 6.81/6.83, respectively.