The ringgit opened slightly higher against the US dollar as risk mode emerged with the US equity benchmark breaking record highs amid increasing expectations of a Federal Reserve (Fed) rate cut later this year.
At 8am, the ringgit rose to 4.6700 against the USD from Tuesday's close of 4.6745.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Afzanizam said that the latest economic data in the United States was also a driver of the rate reduction.
US retail sales were unchanged at 0.0 percent month-on-month in June compared to consensus estimates that pegged the growth rate at a 0.3 percent decline.
However, the US Dollar Index (DXY) rose slightly by 0.05 percent at 104.239 and this shows that the US dollar remains well supported.
Meanwhile, the ringgit traded higher than other major currencies.
It rose against the Japanese yen to 2.9493/9560 from 2.9503/9534 at Tuesday's close, strengthened against the British pound to 6.0603/0732 from 6.0614/0673 and rose against the euro to 5.0912/1021 from 5.0938/0987.
The local note traded mixed against ASEAN currencies.
It rebounded against the Singapore dollar to 3.4747/4827 from 3.4783/4819 and rose against the Indonesian rupiah to 288.5/289.4 from 288.8/289.3.
Conversely, it eased against the Thai baht to 12.9683/13.0025 from 12.9459/9634 and remained unchanged against the Philippine peso at 8.00/8.02 from 8.00/8.01.
