At 9 am, the ringgit was quoted at 4.0780/0830 against the greenback versus 4.0740/0780 yesterday.

Oanda Corp Head of Trading for Asia Pacific Stephen Innes said the risk sentiment has gone in the tank on the continued rhetoric around US President Donald Trump’s scheme to raise China tariffs to 25 per cent instead of 10 per cent with China claiming they will retaliate.

“The market seems to be reacting to the US-China trade war as the US dollar is strengthening against the Chinese Renminbi, hence investors are shifting their interest to the greenback.

“Meanwhile, regional risk aversion, melting regional equity markets, a more hawkish US Federal Reserve and slippery oil prices have proved to be a toxic elixir for ringgit sentiment,” he told Bernama.

Against other major currencies, the ringgit traded higher.

It appreciated against the Singapore dollar to 2.9790/9838 from 2.9805/9838 on Thursday and rose versus the British pound to 5.3079/3165 from 5.3284/3352.

The ringgit increased vis-a-vis the euro to 4.7248/7314 from 4.7303/7358 and improved against the Japanese yen to 3.6495/6550 from 3.6528/6574 yesterday.