The ringgit opened higher against the US dollar on Thursday as the US dollar depreciated following weaker US economic data.
At 10.10am, the ringgit was at 4.2490, up 0.42% against the US dollar from its close of 4.2685.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the weak US dollar environment appeared to continue following the downgrade of the US government's credit rating by Moody's last week.
The US Dollar Index (DXY) continued to decline to 99.605 points, while US Treasury yields rose five and 12 basis points to 4.02% and 4.60% respectively.
He added that former US Treasury Secretary Steve Mnuchin had expressed concern over the widening budget deficit compared to the trade deficit and that the US government should reduce its spending.
He noted that the Trump administration aims to extend the 2017 tax cuts, raise the state and local government tax cap (SALT), implement significant changes to Medicaid and energy subsidies.
At the open, the ringgit traded mostly higher against a basket of major and regional currencies.
It appreciated against the euro to 4.8267/4.8613 from 4.8379/4.8436 Wednesday, and strengthened against the British pound to 5.7160/5.7569 from 5.7241/5.7308, but depreciated against the Japanese yen to 2.98463/2 from 2.9642/2.9679.
Against regional peers, it rose against the Singapore dollar to 3.3033/3.3278 from 3.3071/3.3115, gained against the Indonesian rupiah to 259.6/261.7 from 260.2/260.7, and advanced higher against the Philippine peso from 7.65/7.71 to 7.67/7.68.
However, it fell against the Thai baht to 13.0217/13.1262 from 13.0121/13.0353.
