Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the modest rebound was partly driven by optimism that Washington may settle on a softer set of tariffs as it nears the finalisation of tariffs for selected countries.

“There is speculation that the finalised tariffs could be less severe than the initial proposals announced in early April, which has helped ease some market concerns.

“The ringgit was weaker earlier in the session, slipping to RM4.2383, but later recovered to as high as RM4.2175 during today’s session,” he told Bernama.

Nonetheless, Afzanizam noted that overall sentiment remained cautious, with investors staying on the sidelines as they await greater clarity on trade policy directions and their broader implications.

At 6pm, the local currency appreciated to 4.2180/4.2260 against the greenback from yesterday’s close of 4.2195/4.2255.

At the close, the ringgit traded higher against a basket of major currencies.

It rose against the euro to 4.9675/4.9770 from 4.9756/4.9827, appreciated against the Japanese yen to 2.9225/2.9282 from 2.9333/2.9376, and advanced versus the British pound to 5.7601/5.7710 from 5.7621/5.7703 yesterday.

The local currency traded mixed against its Asean counterparts.

It improved vis-à-vis the Singapore dollar to 3.3114/3.3182 from 3.3146/3.3196, and rose against the Philippine peso to 7.47/7.49 from 7.50/7.51.

However, it slipped against the Thai baht to 13.0302/13.0609 from 13.0211/13.0457, and slipped against the Indonesian rupiah to 260.6/261.2 from 260.5/261.0 previously.