The ringgit closed lower against the US dollar as investors continue to scrutinize the Federal Reserve's (Fed) monetary policy outlook.
At 10:27 am, the ringgit opened at 4.0890, down 0.07% against the US dollar since opening early Thursday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid explained that the US Dollar Index (DXY) rose 0.25% to 98.389 points, following the Fed officials' indecisiveness in cutting interest rates.
He also noted that Fed Governor Christopher Waller has suggested that the policy rate be maintained at 50 to 100 basis points above the neutral rate, thus providing room for further interest rate cuts in the future.
At the opening, the ringgit was trading lower against other major currencies.
It declined against the British pound to 5.4555/4716 from 5.4439/4553 yesterday and fell against the euro to 4.7897/8038 from 4.7866/7965.
However, it rose against the Japanese yen to 2.6236/6315 from 2.6267/6321 yesterday.
The ringgit also strengthened against ASEAN currencies.
It rose against the Singapore dollar to 3.1592/1688 from 3.1614/1682 and rose against the Thai baht to 12.9467/9930 from 12.9657/9989.
It also increased against the Philippine peso to 6.95/6.97 from 6.96/6.97 and increased against the Indonesian rupiah to 244.3/245.2 from 244.7/245.3.
