The ringgit opened lower against the US dollar on Thursday, on subdued expectations for a near-term rate cut by the US Fed.
At 10.30am, the ringgit was at 4.2420, down 0.52% against the US dollar from its close of 4.2215 at Wednesday's close.
Bank Muamalat Malaysia Bhd Chief Economist Dr Afzanizam Rashid said the US Dollar Index (DXY) rose 0.36% to 99.875, minutes after the Federal Open Market Committee (FOMC) signaled that rising risks of stagflation could delay monetary easing this year.
The Fed remains concerned about the risk of persistently high inflation, despite the weak job growth outlook.
The perception is that the Fed may be reluctant to cut the federal funds rate to support growth, presenting a policy dilemma as it must also ensure that inflation remains under control.
Citing the recent FOMC minutes, the risk of a US recession has increased as uncertainty over trade policy and export restrictions could hamper economic activity.
At the open, the ringgit traded higher against a basket of major currencies.
It rose against the Japanese yen to 2.8998/2.9240 from Wednesday's close of 2.9271/2.9315, rose against the euro to 4.7494/4.7887 from 4.7838/4.7906, and rose against the British pound to 5.6779/5.7249 from 5.7028/5.7109.
The local note, meanwhile, traded mixed against its Asean peers.
It strengthened against the Singapore dollar to 3.2674/3.2950 from 3.2776/3.2825 on Wednesday, and rose against the Thai baht to 12.8771/12.9947 from 12.9355/12.9614.
However, it edged lower against the Indonesian rupiah to 259.5/261.8 from 259.0/259.5, and depreciated against the Philippine peso to 7.62/7.69 from 7.60/7.62. – Bernama
