The ringgit rebounded this morning, opening higher against the US dollar amid reports of a softer stance by United States (US) President Donald Trump on China.
At 10am, the ringgit was at 4.2470, up 0.17% against the US dollar from its close of 4.2400 at the end of trading on Wednesday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell 0.23 percent to 98.392 points, as Trump reportedly took a less hawkish stance on China, despite the widening trade deficit with the world's second-largest economy.
In addition, news of the possible dismissal of Fed Chairman Jerome Powell by President Trump continued to fuel positive sentiment in the market.
Therefore, Mohd Afzanizam said the ringgit could gain some traction today after declining slightly by 0.07 percent to 4.2445 yesterday.
At the open, the ringgit traded lower against a basket of major currencies, except the British pound.
It strengthened against the British pound to 5.6767/7055 from 5.6786/6907 at yesterday's close. However, it depreciated against the Japanese yen to 2.8603/8750 from 2.8508/8569, and fell against the euro to 4.9257/9507 from 4.9248/9352 previously.
The local currency was mostly higher against most Asean currencies.
It appreciated against the Singapore dollar to 3.2987/3159 from 3.2999/3071, appreciated against the Indonesian rupiah to 259.9/261.3 from 260.3/260.9 and rose against the Philippine peso to 7.41/7.46 from 7.43/7.45.
But it fell against the Thai baht to 13.0322/1076 from 13.0301/0630 at Wednesday's close.
