The ringgit opened higher against the US dollar and most major currencies on Wednesday, lifted by growing expectations of a US interest rate cut amid weak consumer confidence and concerns over price hikes from tariff hikes.
At 10am, the ringgit was at 4.2200, down 0.14% against the US dollar since it opened in early Asian trade on Wednesday.
Bank Muamalat Malaysia Bhd chief economist Dr Afzanizam Rashid said the US Dollar Index (DXY) fell 0.21% to 98.225 points as the prospect of a rate cut became clearer.
Meanwhile, the latest spat between US President Donald Trump and Federal Reserve (Fed) officials over the firing of Fed Governor Lisa Cook has undermined the central bank's independence, raising concerns that Trump is seeking greater influence amid the push for lower rates.
However, Trump has legal justification for pursuing such a decision.
The ringgit could rebound, with USD/MYR likely to hover around the psychological 4.20 level as the Fed is expected to cut rates at its September meeting.
At the open, the ringgit was also trading stronger against a basket of major currencies.
It rose against the euro to 4.8949/4.9188 from 4.9087/4.9145, rose against the Japanese yen to 2.8519/2.8660 from 2.8571/2.8607 and appreciated against the British pound to 5.6684/5.6968 from 5.6684/5.6968.
The ringgit was mostly higher against other Asean currencies.
It rose against the Singapore dollar to 3.2716/3.2878 from 3.2786/3.2828, edged higher against the Thai baht to 12.9615/13.0351 from 12.9707/12.9917, strengthened against the Philippine peso to 7.37/7.41 from 7.38/7.40, was almost flat against the Indonesian rupiah at 258.0/259.4 from 258.6/259.0.
