The local currency recorded a significant upward trend against the US dollar, as market sentiment assessed the potential for a US interest rate cut in September.
At 10am, the ringgit was at 4.1850, up 0.48% against the US dollar since it opened early Thursday in the Asian session.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the slower momentum to uncertainty over the US Fed's next policy move.
He said the market's likelihood of a US rate cut had increased significantly following US Treasury Secretary Scott Bessent's statement suggesting the Fed should cut its funds rate by 50 basis points at the upcoming Federal Open Market Committee (FOMC) meeting.
The ringgit is expected to rise further, potentially dragging the USD/MYR pair below the RM4.20 level.
Meanwhile, the ringgit was mostly traded lower in early trade.
It fell to 2.8608/8688 against the Japanese yen from 2.8554/8586 previously, and eased to 5.7106/7262 against the British pound from 5.7078/7139, although it rose to 4.9243/9378 from 4.9305/9357 against the euro.
Regional currency movements were mixed.
The local currency strengthened to 3.2858/2953 against the Singapore dollar from 3.2864/2902 and rose to 13.0235/0700 against the Thai baht from 13.0276/0476.
It was little changed against the Indonesian rupiah at 259.4/260.3 from 259.4/259.8 and was steady at 7.41/7.43 against the Philippine peso.
