The ringgit extended its upward momentum to open higher against the US dollar and other major currencies on Wednesday, after the United States Federal Reserve (Fed) signaled no rush to cut interest rates.
At 10.15am, the ringgit was at 4.2320, up 0.19% against the US dollar from its close of 4.2410 at the end of Tuesday's trading.
The ringgit has gained 5.47 percent year-to-date.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Fed Chairman Jerome Powell's testimony to the US House Financial Services Committee showed policymakers were in no hurry to cut the Fed Funds Rate.
He added that this potential benefits emerging market currencies, including the ringgit, to move positively.
The ringgit has the potential to break through immediate support levels and hover around RM4.23 to RM4.24 today.
At the open, the ringgit traded higher against a basket of major currencies.
It strengthened against the Japanese yen to 2.9211/9282 from 2.9256/9296 at Tuesday's close, appreciated against the British pound to 5.7651/7787 from 5.7707/7782, and gained against the euro to 4.9173/9289 from 4.9225/9289 previously.
The local note also traded stronger against its Asean counterparts.
It improved against the Singapore dollar to 3.3083/3164 from 3.3130/3178, rose to 12.9701/13.0147 from 12.9793/13.0021 against the Thai baht, rose against the Indonesian rupiah to 258.9/259.3 from 259.3. Philippine peso to 7.40/7.43 from 7.41/7.44.
