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The ringgit opened higher at 4.08 against the US dollar, supported by expectations of looser US monetary policy, as well as the latest developments from the central bank.
At 10:44 am, the ringgit opened at 4.0800, strengthening by 0.02% against the US dollar since opening early Friday trading in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid explained that the market is now increasingly expecting the Federal Reserve (Fed) to cut interest rates by 2026 following lower-than-expected US inflation data.
He also noted that US inflation data in November recorded a reading of 2.7%, lower than the initial estimate of 3.1%, while core inflation declined to 2.6% from 3.0% in September.
However, October inflation data is uncertain due to the 43-day US government shutdown resulting in a continued lack of monthly analysis data.
At the open, the ringgit traded lower against other major currencies.
It declined against the British pound to 5.4629/4790 from 5.4513/4567 yesterday and fell against the Japanese yen to 2.6234/6313 from 2.6188/6217.
However, it rose slightly against the euro to 4.7861/8002 from 4.7869/7915.
The ringgit was also mixed against ASEAN currencies.
It weakened against the Singapore dollar to 3.1639/1736 from 3.1620/1653 and fell against the Thai baht to 12.9810/13.0287 from 12.9750/9935.
It also rose slightly against the Indonesian rupiah to 244.1/244.9 from 244.2/244.5 and was unchanged against the Philippine peso to 6.97/6.99 from 6.97/6.98 previously.
