The ringgit rebounded, opening higher against the US dollar on Monday after US Federal Reserve (Fed) Chairman Jerome Powell hinted at a possible interest rate cut in September.
At 10am, the ringgit was at 4.2000, up 0.59% against the US dollar since it opened early Monday in Asian trading.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said expectations for an interest rate cut in September were rising after Powell's statement at the Jackson Hole Economic Policy Symposium last Friday.
He said the tight monetary policy stance may need to be adjusted to take into account the changing economic outlook and the non-static balance of risks.
Investors have raised expectations for an interest rate cut at the Federal Open Market Committee (FOMC) meeting on September 16-17.
Mohd Afzanizam said short-term US Treasury yields declined more than long-term securities.
The outlook for emerging market currencies, including the ringgit, is seen as better against the dollar in the near term.
Meanwhile, the ringgit opened lower against a basket of major currencies.
It declined against the pound to 5.6781/7098 from 5.6659/6726 last Friday, eased against the Japanese yen to 2.8545/8704 from 2.8408/8443 and was lower against the euro to 4.9210/9485 from 4.8996/9054.
The ringgit was mixed against other ASEAN currencies.
It strengthened against the Indonesian rupiah to 257.0/258.6 from 258.3/258.7 and rose against the Philippine peso to 7.38/7.43 from 7.42/7.43.
However, the ringgit declined against the Singapore dollar to 3.2776/2962 from 3.2763/2805 and decreased against the Thai baht to 12.9602/13.0423 from 12.9387/9592 last Friday.
