The ringgit opened higher on Friday against the US dollar following weaker demand for the world's currency giant after US economic data showed weakness.
At 10.40am, the ringgit strengthened to 4.7000 against the US dollar from where it closed at 4.7020 on Thursday.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Afzanizam said the US first quarter 2024 GDP results were lower at 1.3% quarter-on-quarter annualized than the first estimate of 1.6%.
The main growth report of the economy which is the Personal Consumer Expenditure (PCE) data is forecast to drop to 2.0% from the first estimate of 2.5%.
Additionally, the US Dollar Index (DXY) fell below 105 points and the 2-year and 10-year US Treasury notes yielded lower by five (4.92%) and seven basis points (4.55%) respectively.
The latest GDP print appears to have revived the view that the US Federal Reserve will need to cut rates this year to keep GDP at its long-term growth rate of 1.8 percent.
Meanwhile, the ringgit traded lower against a group of major currencies.
The local unit fell against the euro to 5.0906/0971 from 5.0838/0892 at Thursday's close, slipped against the British pound to 5.9826/9903 from 5.9767/9831 and was lower against the Japanese yen from 2.9959/9992 yesterday.
The ringgit is mixed compared to other Asean regional peers.
It eased against the Thai baht to 12.8125/8334 from 12.7727/7908 at Thursday's close and fell against the Singapore dollar to 3.4812/4859 from 3.4791/4833.
The ringgit rose against the Indonesian rupiah to 288.9/289.4 from 289.0/289.4 yesterday and traded unchanged against the Philippine peso at 8.02/8.04 from 8.02/8.03 previously.
