The ringgit extended its gains for a seventh day on Thursday, opening higher against the US dollar, supported by the much-anticipated 25 basis point cut at 2am on Thursday by the Fed.
At 10am, the ringgit was at 4.1950, down 0.24% against the US dollar since it opened in Asian trading on Thursday.
Bank Muamalat Malaysia Bhd chief economist Dr Afzanizam Rashid said the decision came with several clues.
He said monetary policy is not something that is set at will and there are biased views among members of the Federal Open Market Committee (FOMC).
The gap between the US federal funds rate (FFR) and Malaysia's overnight policy rate (OPR) is narrowing and the US dollar's currency trend may look to hold at certain levels.
Dr Afzanizam said the ringgit could experience some profit-taking after recording significant gains after the ringgit-dollar broke through the psychological level of RM4.20. The local unit could move in a range of RM4.19 to RM4.20 today.
At the open, the ringgit traded higher against most major currencies.
It rose against the Japanese yen to 2.7383/2.7525 from 2.7493/2.7528 at Wednesday's close, strengthened against the British pound to 5.5189/5.5472 from 5.5326/5.5392 and rose against the euro to 4.8583/4.8782 from 4.8782/4.8782
The local note also traded mostly higher against most Asean currencies.
It improved against the Singapore dollar to 3.2245/3.2416 from 3.2324/3.2365 at Wednesday's close and rose against the Indonesian rupiah to 251.7/253.1 from 251.8/252.2.
The ringgit strengthened against the Thai baht to 12.9096/12.9840 from 12.9651/12.9858 but was little changed against the Philippine peso at 7.12/7.16 from 7.12/7.14 previously.
