The ringgit extended its upward trend against the US dollar on Wednesday, supported by a 0.43 percent decline in the US Dollar Index (DXY) to 98.097 after the US inflation rate fell less than expected.
At 10am, the ringgit was at 4.2200, positive against the US dollar from its close of 4.2290 at the end of Tuesday's trading.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was likely to be well supported today, with the USD/MYR pair expected to trade between RM4.20 and RM4.23 amid the high probability of a US interest rate cut.
The lower US inflation rate of 2.7 percent in July was largely driven by a moderation in Owner Equivalent Rent (OER) to 4.1 percent, after holding at 4.2 percent for two consecutive months.
OER contributes about 25 percent of the Consumer Price Index (CPI) weighting.
At the open, the ringgit was mostly traded lower against major currencies.
It fell against the Japanese yen to 2.8502/8619 from Tuesday's close of 2.8490/8512 and eased against the euro to 4.9182/9380 from 4.9090/9125 yesterday.
But against the British pound, the local currency rose to 5.6876/7106 from 5.6905/6946.
The ringgit moved higher against its regional peers.
It rose against the Singapore dollar to 3.2825/2960 from 3.2867/2893 at yesterday's close and strengthened against the Thai baht to 12.9965/13.0570 from 13.0135/0300.
The local currency also appreciated against the Indonesian rupiah to 258.5/259.6 from 259.6/259.9 previously and increased against the Philippine peso to 7.38/7.41 from 7.41/7.42.
