The ringgit opened slightly lower against the US dollar following profit-taking activity after the local currency hit a yearly high as well as the United States FOMC's decision to cut interest rates by 50 basis points.
At 10.30 am, the ringgit was at a position of 4.2650 which is 0.54% lower against the USD than it closed at 4.2410 on Wednesday.
The Chief Economist of Bank Muamalat Malaysia Bhd, Dr Afzanizam said the FOMC meeting early this morning had decided the Fed to implement an aggressive interest rate cut to 4.75% to 5.00% compared to before.
However, the decision did not get the full support of all members of the meeting with one official standing to maintain a moderate cut of 25 basis points.
However, all officials agreed to immediately ease monetary policy at the meeting.
Many analysts believe that the ringgit has the potential to rise in the future.
Meanwhile, the ringgit is trading high compared to a group of major currencies.
It strengthened against the pound to 5.6003, jumped against the Japanese yen to 2.9717 and also rose against the euro to 4.7148.
Meanwhile, the ringgit traded somewhat mixed compared to its fellow currencies in the Asean region.
It was firm against the Singapore dollar to 3.2724 and also against the Thai baht to 12.6994.
However, the local currency was unchanged against the Philippine peso at 7.61 and declined against the Indonesian rupiah to 276.6.
