The ringgit opened higher against the US dollar on Wednesday, supported by weaker US (US) economic data that weighed on the greenback and prompted investors to reassess market sentiment.
At 10.20am, the ringgit was at 4.2260, stable against the US dollar since its close on Tuesday.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid reported that the weaker-than-expected US ISM Services Purchasing Managers Index (PMI) strengthened expectations that the Fed might cut interest rates in September.
He added that weaker US economic data, including the US NFP data last Friday, had changed the narrative.
The possibility of a rate cut is increasing as policymakers seek to support growth.
Domestically, the ringgit has performed well against the US dollar but warned that some profit-taking may occur after its sharp gains over the past two days.
The ringgit is expected to move RM4.22 to RM4.24 against the US dollar today.
It strengthened against the Japanese yen to 2.8795/8889 from 2.8618/8654 on Tuesday and rose against the British pound to 5.6197/6377 from 5.6159/6226. However, it weakened against the euro to 4.8954/9110 from 4.8772/8830.
The ringgit rose against the Singapore dollar to 3.2841/2949 from 3.2793/2834 and appreciated against the Thai baht to 13.0747/1229 from 13.0408/0627.
The local unit also appreciated against the Philippine peso to 7.36/7.39 from 7.33/7.34 and strengthened against the Indonesian rupiah to 257.6/258.5 from 257.8/258.2.
