The ringgit opened stronger against the US dollar, boosted by renewed market concerns over a possible US government shutdown and speculation of a downward shift in US interest rates, both of which weighed on the US dollar.
At 10am, the ringgit was at 4.2040, up 0.05% against the US dollar since it opened early Wednesday in Asian trading.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said market sentiment remained in favour of the ringgit amid growing concerns over the political deadlock in Washington, which could lead to a temporary shutdown of the federal government.
He said the continued uncertainty surrounding the possibility of a US government shutdown was expected to drive support for the ringgit, as expectations of lower US interest rates further weakened the dollar.
The ringgit attempted to break through the psychological level of RM4.20, after gaining 0.25 per cent at the previous close.
It also gained ground against a basket of major currencies.
The ringgit strengthened against the Japanese yen to 2.8348/8491 from 2.8420/8447, rose against the British pound to 5.6417/6699 from 5.6532/6586, and appreciated against the euro to 4.9251/9497 from 4.9405/9452.
Regionally, the ringgit was also generally higher against major ASEAN currencies.
It rose to 3.2530/2695 against the Singapore dollar from 3.2604/2638, strengthened against the Indonesian rupiah at 251.9/253.2 from 252.3/252.6, rose to 7.21/7.25 against the Philippine peso from 7.22/7.24, strengthened against the Thai bhat at 12.9265/9963 from 12.9744/9927.
