KUALA LUMPUR: The ringgit continued its uptrend to close higher against the US dollar today on the back of firmer oil prices and improved risk sentiment, dealers said.
At 6pm, the local note ended at 3.9250/9280 against the greenback from 3.9330/9370 on Monday.
OANDA Head of Trading for Asia Pacific, Stephen Innes, said opinion, however, was slightly dented on a possible escalation of US trade sanctions.
"The first salvo was launched today in what could develop into a long-drawn-out 'tit for tat' trade battle between the US versus China and South Korea, and possibly the rest of Asia.
"The US administration imposed tariffs on imported solar panels and washing machines, in a move towards what could develop into the trade war between some global economies," Innes told Bernama.
He said emerging markets in Asia would be closely watching the development as trade-related fears were probably the most prominent external risks since most regional economies were trade-oriented.
This week, focus would be on the World Economic Forum in Davos, Switzerland, where US President Donald Trump is expected to deliver a keynote address on the final day of the forum.
"Anytime Trump takes the podium, especially when he is the headline event, the chance for market turmoil elevates two-fold," said Innes.
He also expected the ringgit to move range-bound ahead of the European Central Bank meeting on Thursday, with the ringgit support level to be seen at 3.92 level while resistance at 3.94 against the US dollar.
On the local front, Prime Minister Datuk Seri Najib Tun Razak today said Malaysia would never repeat the measure of re-pegging the ringgit as the move would be an unmitigated disaster for the economy and the prosperity of the people.
Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.
The local note strengthened against the Singapore dollar to 2.9737/9771 from Monday's 2.9809/9848.
It rose against the yen to 3.5466/5499 from 3.5522/5565 yesterday and up against the euro to 4.8026/8079 from 4.8179/8232.
The ringgit, however, fell against the British pound to 5.4738/4788 from 5.4653/4724 on Monday. –BERNAMA