The ringgit continued to rise against the USD to open around RM4.33 during early trading on Wednesday despite the latest US figures being better than expected.
At exactly 10.30 am, the ringgit was at a position of 4.3420, which is 0.07% lower against the US dollar than it closed at 4.3460 on Tuesday.
The ringgit opened around 4.3320 which is the level it reached on 10 February 2023.
The latest economic data from the United States on consumer sentiment indicates that US citizens are now cautious about the labor market situation in line with the increase in the unemployment rate to 4.3% in July.
In addition, the US Dollar Index (DXY) fell 0.3% to 100,552 points while the two-year US Treasury note yield fell four basis points to 3.90%.
This suggests that expectations for a cut in US interest rates remain intact.
Furthermore, several global investment banks have upgraded their country's rating and Malaysia which could drive more foreign funds into the country. Therefore, this will effectively create a high demand for the local currency.
Meanwhile, the ringgit traded mostly higher against a group of major currencies and Asean currencies.
The local currency rose against the British pound to 5.7460/5.7659 from 5.7511/5.7564 at Tuesday's close, rose against the euro to 4.8452/4.8620 from 4.8532/4.8576 yesterday but weakened against the Japanese yen to 3.0115/3.0221 from 3.0006/3.0035 before this .
The ringgit rose against the Singapore dollar to 3.3308/3.3428 from 3.3331/3.3364 at yesterday's close and rose against the Indonesian rupiah to 279.7/280.8 from 280.4/280.8 previously.
It also improved against the Philippine peso to 7.70/7.73 from 7.72/7.73 at Tuesday's close but eased against the Thai baht to 12.7699/12.8235 from 12.7523/12.7712 yesterday.
