The ringgit opened slightly lower against the US dollar on Friday as stronger-than-expected US economic data continued to support the strengthening of the country's currency.
At 10:22 am, the ringgit was at RM4.1050, up 0.24% since it opened early Friday in Asian trading.
However, the reopening of the Strait of Hormuz helped boost investor appetite for riskier assets, thus limiting the ringgit's depreciation.
The United States reported first-quarter Gross Domestic Product (GDP) growth of 2.1%, higher than market expectations of 1.6%.
Meanwhile, the Personal Consumption Expenditure (PCE) inflation rate for May was 4.1%, in line with market expectations.
Bank Muamalat Malaysia Bhd Chief Economist Dr. Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell 0.18% to 101.431 points after the PCE data was announced.
He explained that consumer spending growth remained below 1% for two consecutive quarters, thus giving the impression that consumer spending in the US is still weak.
According to him, the US dollar's rise may not be sustainable in the long term, especially as crude oil prices continue to decline following the 60-day peace talks between the United States and Iran.
In the opening session, the ringgit was also traded weaker against several major world currencies.
The ringgit weakened against the British pound to 5.4295/4427 from 5.4261/4314 at yesterday's close. It also declined against the euro to 4.6777/6891 from 4.6762/6807, in addition to weakening against the Japanese yen to 2.5445/5508 from 2.5437/5464.
Against regional currencies, the ringgit's performance was seen to be almost unchanged.
The ringgit remained flat against the Singapore dollar at 3.1742/1824 from 3.1742/1775 yesterday. It was also unchanged against the Indonesian rupiah at 229.4/230.1 from 229.4/229.7, and remained stable against the Philippine peso at 6.71/6.73 from 6.71/6.72.
However, the ringgit weakened slightly against the Thai baht to 12.3245/3618 from 12.3370/3538 at the previous close.
