The ringgit rebounded to 4.6800 against the US dollar at the opening today, matching the position in March. Lower-than-expected US inflation data raised hopes for an early interest rate cut in the United States.
At exactly 9am this morning, the ringgit strengthened to 4.6800 against the US dollar from Wednesday's close at 4.7050 yesterday.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Afzanizam said the local currency was able to survive at around RM4.67 to RM4.68 today.
The ringgit is likely to perform well today as the US inflation rate is on a lower track with the latest print showing it decreased to 3.4% in April on an annualized basis compared to 3.5% in March.
The forex market is likely to be bullish as the chance of a rate hike is slim and there is good progress in US inflation.
Meanwhile, the ringgit traded more easily at the opening than a group of major currencies.
It fell further against the Japanese yen to 3.0435/0470 from 3.0189/0207 at yesterday's close, fell against the British pound to 5.9422/9485 from Wednesday's close of 5.9391/9423 and fell against the euro to 5.0970/1024 from 5.0941/0968 previously.
The local note also traded mixed against Asean currencies.
The local currency traded against the Singapore dollar at 3.4858/4898 from 3.4873/4894 at Wednesday's close and fell against the Thai baht to 12.9128/9313 from 12.8735/8867 yesterday.
It improved against the Indonesian rupiah to 291.9/292.4 from 293.5/293.8 previously and rose against the Philippine peso to 8.16/8.17 from 8.17/8.19.
