The ringgit rose in early trade on Thursday, supported by improved sentiment following Malaysia's latest fiscal measures and confidence in global trade developments.
At 10am, the ringgit was at 4.2180, up 0.17% against the US dollar from its close of 4.2255 at the end of Wednesday.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index fell 0.18% to 97.214 points, as the market took advantage of the risk-on mode.
He added that the ringgit is expected to remain positive, hovering between RM4.22 and RM4.23.
In addition, Prime Minister Datuk Seri Anwar Ibrahim announced a RM100 cash handout to all adult Malaysians as well as a plan to lower fuel prices, which is aimed at easing the cost of living pressure and is expected to create a positive cycle for the local economy quickly.
At the opening of trade, the ringgit was mostly traded higher against a basket of major currencies.
The ringgit strengthened against the Japanese yen to 2.8774/8899 from 2.8837/8870 at yesterday's close, and rose slightly against the British pound to 5.7201/7445 from 5.7230/7291.
However, the ringgit weakened against the euro to 4.9590/9802 from 4.9586/9639.
The ringgit also strengthened against its ASEAN regional currencies.
The domestic currency rose against the Singapore dollar to 3.3007/3153 from 3.3071/3109, and strengthened against the Indonesian rupiah to 258.4/259.6 from 259.1/259.5.
The ringgit also rose slightly against the Philippine peso to 7.40/7.44 from 7.42/7.44 yesterday and was higher against the Thai baht to 13.0992/1613 from 13.1370/1567.
