The ringgit opened unchanged against the US dollar on Tuesday trading due to high expectations of interest rate cuts by the Federal Reserve (Fed).
At 10.30am, the ringgit was down slightly at 4.3540, which is a 0.21% loss against the US dollar from where it closed at 4.3470 on Monday.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Afzanizam said San Francisco Fed President Mary Daly gave an indication that a reduction in interest rates by a quarter point is likely to be set at next September's meeting.
He also said that the trajectory of the ringgit remains positive given that the status quo of Malaysia's monetary policy is expected to remain.
Sentiments like this will reflect that the US Fed Funds Rate and Malaysia's Overnight Policy Rate (OPR) will shrink in the coming months.
However, the market needs to be prepared for the possibility of profit taking activity after the ringgit's positive position recently.
Meanwhile, the ringgit is mostly higher against several major currencies.
The local currency rose against the Japanese yen to 3.0073/0099 from 3.0188/0214 at Monday's close and rose against the euro to 4.8526/8565 from 4.8565/8604.
However, the ringgit was slightly lower against the British pound to 5.7333/7379 from 5.7324/7370 yesterday.
At the same time, the local unit traded with a mixed performance against Asean currencies.
The ringgit rose against the Singapore dollar to 3.3333/3365 from 3.3367/3396 at yesterday's close and higher against the Thai baht to 12.7815/8009 from 12.7891/8050.
The domestic unit was unchanged against the Philippine peso at 7.75/7.77 and also flat against the Indonesian rupiah at 281.5/281.8.
