The ringgit opened slightly higher against the US dollar on Thursday with the US Dollar Index (DXY) up 0.2% to 103.47 points as momentum for global interest rate cuts picked up and the Fed appeared hesitant to be more aggressive.
At 10.20 am, the ringgit was at 4.2980 which is 0.19% lower against the USD than it closed at 4.2945 on Wednesday.
Bank Muamalat Malaysia Bhd Chief Economist Afzanizam Rashid said the European Central Bank is expected to cut its policy rate by 25 basis points following inflation falling below the 2% target and weak business sentiment in the manufacturing sector.
He also said that the Bank of Thailand made a surprise cut of 25 basis points following similar moves by Indonesia and the Philippines indicating that global interest rates may have peaked.
However, the US Fed is likely to delay further easing as the current economic resilience will support the USD's position for the time being.
The ringgit is likely to remain stable due to Bank Negara Malaysia taking a different approach due to concerns about continued inflation risks.
At the opening, the ringgit was higher against a basket of major currencies.
It rose against the euro to 4.6624/4.6798 from Wednesday's close of 4.6780/4.6834, rose against the British pound to 5.5766/5.5974 from 5.5889/5.5954 and rose against the Japanese yen from 2.8713/2.8822 to 2.8772/2.8807.
Local notes traded mixed against Asean currencies.
It appreciated against the Singapore dollar to 3.2694/3.2818 from 3.2800/3.2841 yesterday and higher against the Thai baht to 12.9279/12.9858 from 12.9329/12.9546 on Wednesday.
The ringgit was almost unchanged against the Indonesian rupiah at 276.8/278.0 from 276.8/277.3 yesterday and was almost unchanged against the Philippine peso at 7.43/7.46 from 7.43/7.45 previously
