The ringgit opened stronger against the US dollar on Monday amid cautious sentiment on the trajectory of US interest rates.
At 10am, the ringgit was at 4.2180, down 0.19% 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 a September rate cut were growing, with the US Fed expected to implement its first interest rate cut this year.
He added that US consumer spending accounts for more than two-thirds of the country's economy and the data dampened expectations of a September rate cut.
The University of Michigan Consumer Sentiment Index (CSI) fell to 58.6 points in August from 61.7 points in the previous month. Other measures such as the Current Conditions Index and Expectations Index also declined in August.
Higher price increases due to rising import tariffs may deter US consumers from spending.
The report may support the ringgit to remain at the psychological level of RM4.20 throughout the day.
At the open today, the ringgit was higher against major currencies, but depreciated against the euro to 4.9224/9470 from 4.9185/9267 at Friday's close.
It strengthened against the Japanese yen to 2.8557/8701 from Friday's close of 2.8653/8702 and rose against the British pound to 5.6999/7283 from 5.7050/7145.
The ringgit also traded stronger against its regional peers.
It appreciated against the Singapore dollar to 3.2777/2944 from 3.2820/2877 at Friday's close and rose against the Thai baht to 12.9361/13.0091 from 12.9760/13.0032.
The local currency also rose against the Philippine peso to 7.36/7.41 from 7.37/7.39 previously and was almost flat against the Indonesian rupiah to 260.0/261.4 from 260.2/260.8
