The ringgit continued to move strongly in early trading on Thursday benefiting from the spillover effect of foreign investors in the local bourse.
At 10.15am, the ringgit was at 4.3320 which is 0.30% stronger against the US dollar than it closed at 4.3425 on Wednesday.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Afzanizam said the strong interest of foreign investors in the local capital market has led to increased demand for the ringgit.
A rally higher in the FBM KLCI on Wednesday closed near a 45-month high of 1,675.24.
He also said that market participants will closely monitor the US economic data, particularly the inflation of the Personal Consumer Expenditure (PCE) Price Index and the US Gross Domestic Product (GDP) for the second quarter of 2024.
The market sees the USD/MYR market likely to move towards the 4.3000 support although potential profit-taking activity could occur in the near future.
Meanwhile, the ringgit traded mostly higher against a group of major currencies and Asean currencies.
The local currency rose against the Japanese yen to 3.0035/3.0106 from 3.0096/3.0122 on Wednesday, rose against the euro to 4.8261/4.8373 from 4.8362/4.8401 and rose against the British pound to 5.7233/5.7365 from 5.7233/5.7365
Against Asean currencies, the ringgit rose against the Singapore dollar to 3.3281/3.3360 from 3.3337/3.3367 at Wednesday's close and rose against the Thai baht to 12.7367/12.7739 from 12.7709/12.7865.
It also edged higher against the Philippine peso to 7.71/7.74 from 7.72/7.73 on Wednesday and rose against the Indonesian rupiah to 281.2/282.1 from 281.5/281.9.
