The ringgit opened lower against the US dollar and mixed against other currencies, as support from stronger oil prices was offset by a broader strengthening of the US dollar and cautious sentiment following the Federal Reserve's interest rate decision.
At 11am, the ringgit was trading at 3.9640, down 0.35% since it opened early Thursday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid said the Fed was inclined to keep interest rates on hold as economic activity was still growing at a solid pace despite slowing job growth.
In its third meeting this year, the Federal Open Market Committee maintained the federal funds rate target range at 3.50 per cent to 3.75 per cent.
According to him, with the sharp surge in crude oil prices, the ringgit is expected to continue to weaken today, with the US dollar/ringgit pair potentially trying to break through the RM3.96 level.
At the opening of trade, the ringgit was traded mixed against major currencies and ASEAN countries.
The ringgit rose slightly against the Japanese yen to 2.4700/4744 from 2.4709/4739 on Wednesday.
However, the ringgit weakened against the British pound to 5.3381/3469 from 5.3330/3391, and depreciated against the euro to 4.6236/6312 from 4.6197/6250.
Against regional currencies, the ringgit fell slightly against the Singapore dollar to 3.0905/0659 from 3.0909/0946, but strengthened against the Thai baht to 12.0765/1022 from 12.0791/0980.
The ringgit also weakened against the Indonesian rupiah to 228.3/228.8 from 227.9/228.3, and fell against the Philippine peso to 6.42/6.44 from 6.41/6.42.
