The ringgit opened higher against several major world currencies including the US dollar, ahead of the release of key US economic data tonight that is expected to influence the direction of the US Federal Reserve's (Fed) interest rate.
At 10:20 am, the ringgit was trading at 3.9200, down 0.23% since it opened early Tuesday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Consumer Price Index (CPI) data for April would be announced tonight.
The headline CPI and core CPI are expected to increase to 3.7 per cent from 3.3 per cent in March, and 2.7 per cent from 2.6 per cent previously.
According to him, this could cause the Fed to maintain the current interest rate while at the same time reducing the possibility of a rate cut this year.
He also explained that the ringgit is expected to continue to move sideways in the near term as global geopolitical risks remain high, especially ahead of the important meeting between US President Donald Trump and Chinese President Xi Jinping this week.
In early trade, the ringgit was mostly traded stronger against major world currencies.
Against the Japanese yen, the ringgit strengthened to 2.4925/4990 from 2.4955/4983 at yesterday's close. The ringgit also rose against the British pound to 5.3312/3448 from 5.3331/3383 previously.
However, the ringgit weakened slightly against the euro to 4.6162/6280 from 4.6150/6197 previously.
Among regional currencies, the ringgit's performance was mixed.
The ringgit rose against the Singapore dollar to 3.0883/0964 from 3.0887/0921 at yesterday's close. It also strengthened against the Indonesian rupiah to 225.1/225.7 from 225.2/225.5 previously.
However, the ringgit was almost unchanged against the Philippine peso at 6.41/6.43 from 6.41/6.42 yesterday, and weakened slightly against the Thai baht to 12.1374/1759 from 12.0900/1083 previously.
