The ringgit opened stronger on Thursday, gaining on the back of a weaker US dollar following the release of the Federal Open Market Committee (FOMC) minutes.
At 10am, the ringgit was at 4.2190, up 0.12% against the US dollar since it opened early Thursday in Asian trading.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the minutes showed the US Federal Reserve was on a stable path as it assessed the tariff-driven shock to the economy, particularly inflation.
There were mixed views on whether the impact would be temporary or permanent.
He added that Fed members Michelle Bowman and Christopher Waller, two FOMC members who dissented and supported the 25 basis point cut, believed the impact of tariff-driven inflation would be temporary.
The US Dollar Index (DXY) fell 0.05% to 98.218 after the minutes sent mixed signals to investors. Attention now turns to Fed Chairman Jerome Powell's speech at the Jackson Hole Symposium on Friday.
Meanwhile, the ringgit is expected to trade in a narrow range as market players remain cautious, although the possibility of a 25 basis point cut in September is high.
The ringgit also rose against a basket of currencies.
It rose against the euro to 4.9156/9325 from 4.9196/9242 on Wednesday, rose against the Japanese yen to 2.8646/8747 from 2.8648/8677 and strengthened against the British pound to 5.6809/7004 from 5.7033/7087.
Against ASEAN units, the ringgit rose to 3.2828/2943 against the Singapore dollar from 3.2864/2898, rose against the Thai baht to 12.9528/13.0037 from 12.9756/9935, rose to 259.2/260.2 against the Indonesian rupiah from 259.2/260.2.
It also rose to 7.40/7.43 against the Philippine peso from 7.41/7.42
