The ringgit rose again against the United States (US) dollar in early trading on Friday after undergoing a technical correction yesterday.
At 10.40am, the local currency was trading firmer at 4.1260 which is 0.34% stronger against the USD than it closed at 4.1430 on Thursday.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Mohd Afzanizam said the ringgit's technical correction yesterday was due to excessive buying activity which caused a few traders to make a profit.
However, the perception of interest rate cuts in the US at the US Open Market Committee (FOMC) meeting remains potential in November and December.
Additionally, market participants should monitor the announcement on US Personal Consumption Expenditure inflation this Friday night.
He said the immediate support level for the ringgit is at RM4.0728 and he is confident that the local currency will tend to that level as the Overnight Policy Rate (OPR) may remain for the remainder of this year until 2025.
This sentiment makes the ringgit attractive, especially after central banks in the Asian region have started monetary easing measures such as Indonesia and the Philippines.
In the meantime, the ringgit traded stronger compared to the main currency group.
The ringgit rose against the Japanese yen to 2.8442/8504 from 2.8634/8674 yesterday, strengthened against the euro to 4.6084/6179 from 4.6157/6218 and rose against the British pound to 5.5284/5398 from 5.5317/5391.
Compared to Asean currencies, the ringgit is also trading positively.
This included an increase against the Singapore dollar to 3.2109/2181 from 3.2204/2249 and strengthening against the Philippine peso to 7.36/7.39 from 7.40/7.41.
It also rose against the Indonesian rupiah to 271.8/272.6 from 273.1/273.6 and rose to 12.7229/7570 from 12.7242/7489 against the Thai baht yesterday
