The ringgit opened higher against the US dollar on Wednesday, supported by the weakness of the developed country's currency after the US Federal Reserve (Fed) signaled a tendency towards low interest rates.
At 9.50am, the ringgit was at 4.2230, up 0.12% against the US dollar since it opened in early trading on Wednesday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell 0.20 percent to 99.064 points after the Fed Chairman signaled increased risks in the labor market.
He said the situation had increased expectations for an interest rate cut by the upcoming Fed Open Market Committee (FOMC) meeting.
The latest forecast by the International Monetary Fund (IMF) showed the global economy is expected to grow 3.2 percent in 2025, an upward revision from the forecast in July.
Meanwhile, trade talks between the US and other major economies are showing positive developments, providing better policy clarity than in April 2025 when the market was unprepared for shocks or headwinds.
Mohd Afzanizam said the ringgit is expected to perform slightly better today, with the USD/MYR pair expected to trade between RM4.22 and RM4.23.
However, the ringgit is trading lower against several major currencies.
The local unit fell against the euro to 4.8988/9156 from 4.8879/8937 at yesterday's close, and weakened against the British pound to 5.6241/6434 from 5.6118/6184.
The ringgit fell against the Japanese yen to 2.7840/7938 from 2.7808/7843.
The domestic currency was also trading lower against ASEAN currencies.
The local currency fell against the Thai baht to 12.9358/9866 from 12.8975/9182 at Tuesday's close, and eased against the Singapore dollar to 3.2514/2631 from 3.2512/2553.
The ringgit was less stable against the Indonesian rupiah to 254.2/255.2 from 254.8/255.2, and was little changed against the Philippine peso to 7.25/7.28 from 7.26/7.27.
