The ringgit opened slightly lower against the US dollar early this morning, reflecting a technical correction after its recent gains.
At 10:30am, the ringgit was at 4.1670, down 0.46% against the US dollar since opening early Tuesday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid explained that the correction was justified, as the ringgit is currently overbought according to technical indicators.
He also stated that the ringgit is expected to remain at a constructive level in the medium to long term, supported by strong economic growth and a reduction in the fiscal deficit, seen as positive signs by credit rating agencies.
Meanwhile, the US Dollar Index (DXY) rose 0.24% to 99.53 points as market expectations for a possible United States (US) interest rate cut in December eased.
At the opening, the ringgit was higher against a basket of major currencies.
It rose against the yen to 2.6720/2.6792 from 2.6805/2.6829, rose against the euro to 4.8077/4.8204 from 4.8125/4.8166, and strengthened against the British pound to 5.4561/5.4706 from 5.4608/5.4654 previously.
The ringgit was also mixed against Asean currencies.
It strengthened against the Thai baht to 12.7697/12.8111 from 12.7847/12.8018 yesterday, and rose against the Singapore dollar to 3.1836/3.1922 from 3.1864/3.1893 previously.
It was also little changed against the Indonesian rupiah to 247.8/248.6 from 247.8/248.1 yesterday, and was almost flat against the Philippine peso to 7.04/7.06 from 7.04/7.05 previously.
