The ringgit opened lower since the beginning of the week against the US dollar due to expectations of an aggressive interest rate of 50 basis points diminishing in the market.
At 9.50am, the ringgit was at a position of 4.3300 which is 0.07% stronger against the USD since it opened on Wednesday morning trading.
The Chief Economist of Bank Muamalat Malaysia Bhd, Dr Afzanizam said the latest US Consumer Price Index (CPI) report shows a consecutive increase and the Core CPI remains stubbornly at its current position.
This will reduce expectations for the Fed to implement aggressive rate cuts.
Additionally, the yield on two-year US Treasury notes rose by 3.0 basis points and the US Dollar Index (DXY) rose 0.05% to 101,684 points.
The strengthening of the US dollar's position against other currencies may push the ringgit to hover around RM4.33 throughout the day.
However, the ringgit is trading higher against a group of major currencies.
In early trade, the ringgit strengthened against the euro to 4.7657/4.7772 from 4.7774/4.7835 at Wednesday's close, rose against the British pound to 5.6435/5.6572 from 5.6623/5.6695, and appreciated against the Japanese yen to 3.9305/3.0350 from 3.9305/3.0350.
In addition, the ringgit traded mixed against Asean currencies.
It rose against the Thai baht to 12.8024/12.8422 from 12.8523/12.8752 yesterday and rose against the Singapore dollar to 3.3176/3.3259 from 3.3223/3.3268.
However, it eased slightly against the Indonesian rupiah to 280.9/281.8 from 280.8/281.4 and was almost flat against the Philippine peso at 7.73/7.76 versus 7.73/7.75.
