The ringgit bounced back with strengthening after opening higher against the US dollar as market participants displayed selling activity in the world's giant foreign exchange.
At exactly 9am this morning, the local currency was at 4.7380 against the US dollar from its closing of 4.7545 yesterday.
According to Bank Muamalat Bhd Economist, Dr Afzanizam said the US dollar is experiencing a far weaker than expected based on the US ISM report for the non-manufacturing purchasing managers' index. It set the result at 51.4 points compared to the consensus of 52.8 points.
The latest economic data reports have caused investors to take profits in the US dollar due to the Fed needing to take more time to cut interest rates.
However, the market situation is still not clear whether there will be a correction in the value of the dollar to arrange a new strengthening.
Last night, Fed Chairman Jerome Powell stood by his stance that they would not rush to cut interest rates.
He also said that the market will wait for the Non-Farm Payrolls (NFP) data this Friday to give a clear picture of the next direction of the global currency.
For now, the ringgit is trading mostly low against a group of major currencies.
The local currency rose against the Japanese yen to 3.1259/1285 from 3.1329/1351 at Wednesday's close, but it eased against the euro to 5.1365/1403 from 5.1192/1224 yesterday and weakened against the British pound to 5.9945/9989 from 5.9769/9807 previously.
The ringgit is trading higher against Asean currencies.
It appreciated against the Thai baht to 12.9432/9581 from 12.9519/9653 on Wednesday and rose against the Indonesian rupiah to 297.5/297.9 from 298.6/298.9 previously.
The ringgit was also stronger against the Philippine peso at 8.40/8.42 compared to 8.42/8.43 at yesterday's close and rose against the Singapore dollar to 3.5151/5180 from 3.5159/5183 previously.
