The ringgit opened stronger against the US dollar on Friday, following a weaker US Dollar Index (DXY) amid mixed economic data.
At 10am, the local currency rose to 4.2500, up 0.47% against the US dollar from Thursday's close of 4.2705/4.2765.
Bank Muamalat Malaysia Bhd chief economist Dr Afzanizam Rashid said the DXY remained below the 100-point mark while economic data was mixed.
Meanwhile, Afzanizam said the US Purchasing Managers' Index (PMI) for the manufacturing industry saw a significant increase to 52.3 points in May from 50.2 points in April, with a significant increase in new orders being the main driver.
Furthermore, he added that the US House of Representatives had passed the One Big Beautiful Bill which would extend the 2017 tax cuts, provide a new deduction for tips and increase the state tax cap.
The budget deficit is likely to widen from the current 6.1% of gross domestic product (GDP). This will impact the government's debt burden, which is already 100% of GDP.
At the opening, the ringgit traded higher against a basket of major and regional currencies.
It appreciated against the Japanese yen to 2.9591/2.9791 from 2.9768/2.9812 on Thursday, strengthened against the British pound to 5.7131/5.7514 from 5.7212/5.7292 and edged higher against the euro to 4.8029/4.8350 from 4.8218/4.8286.
Against regional peers, it rose against the Singapore dollar to 3.2943/3.3166 from 3.3061/3.3110 and rose against the Thai baht to 12.9498/13.0484 from 13.0000/13.0254.
The local currency also appreciated against the Indonesian rupiah to 260.7/262.6 from 261.5/262.0, and was higher against the Philippine peso to 7.65/7.71 from 7.68/7.69.
