The ringgit strengthened against the US dollar at the opening of trade on Thursday after the United States economic report recorded weakness and reinforced the market's view that bearish sentiment is taking place.
This indicates a need for the Federal Reserve (Fed) to immediately loosen monetary policy to boost the economy.
At 9am, the ringgit strengthened to 4.7100/4.7130 against the US dollar from Wednesday's close of 4.7180/4.7210.
Dr Afzanizam said the ringgit showed an encouraging performance on Thursday and may break through the RM4.71 level following weaker US economic data.
He also said that the series of US economic data displayed by the ISM Index for the service sector fell below the boundary line of 50 points to 48.8 points in June and the New Orders sub-index dropped significantly to 47.3 points.
Meanwhile, the ringgit is easier to trade than a group of major currencies.
The local currency retreated against the Japanese yen to 2.9180/2.9201 from yesterday's close of 2.9149/2.9169, it again breached the RM6.00 level by opening at 6.0057/6.0095 against the British pound from 5.9895/5.993 and closed yesterday weak against the euro at 5.0835/5.0867 from the previous 5.0737/5.0770.
The ringgit also closed more easily than its Asean peers except for the Indonesian rupiah.
The local currency was higher against the Indonesian rupiah at 287.6/288.0 from 288.1/288.5 but traded lower against the Singapore dollar at 3.4824/3.4849 from 3.4778/3.4803 at yesterday's close and fell to 12.8653/12.8788 from 12.8618 baht previously. .
The local currency was unchanged against the Philippine peso at 8.03/8.04 since Tuesday's close.
