The ringgit opened stronger against the US dollar on Monday, buoyed by growing expectations of a US (US) interest rate cut after weaker Non-Farm Payroll (NFP) data.
At 9.50am, the ringgit was at 4.2200, unchanged against the US dollar since it opened early Monday in Asian trading.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the softer-than-expected US August NFP report should pave the way for a rate cut at the Federal Open Market Committee (FOMC) meeting next week.
However, the ringgit is likely to be traded cautiously amid political developments in Japan, which is supporting the dollar.
The situation in Japan, where their prime minister has signaled his resignation, is positive for the dollar as the next leadership is expected to be more dovish on fiscal policy.
The ringgit was mostly higher against major currencies in early trade.
It strengthened to 2.8322/8496 against the yen from 2.8489/8531 last week and rose to 5.6694/7038 against the pound from 5.6793/6874. It was little changed against the euro at 4.9213/9512 from 4.9203/9273 previously.
Against ASEAN currencies, the ringgit traded mostly firmer.
It rose to 256.5/257.9 against the rupiah from 257.3/257.7 on Thursday, rose to 3.2706/2867 against the Singapore dollar from 3.2775/2824, and rose to 7.35/7.39 against the peso from 7.40/7.42.
It fell to 13.0454/1158 against the baht from 13.0666/0908 last week.
