The ringgit opened lower against the US dollar as the minutes of the Fed meeting showed that its officials were divided on whether to implement the September rate cut more aggressively or not.
At 10am, the ringgit was trading at 4.2900 which is 0.23% lower against the USD than it closed at 4.2800 on Wednesday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Afzanizam said the minutes of the Fed meeting revealed last night showed that its members preferred a more gradual approach to easing monetary policy.
He also said that the potential cut of 50 basis points in the next meeting in November will not be repeated.
The Fed minutes boosted the value of the US dollar with the US dollar Index (DXY) rising 0.37% to 102,928 points.
Therefore, traders and investors will be watching the release of the US consumer price index tonight with headline inflation expected to increase by 2.3% in September from 2.5% while core inflation will be maintained at 3.2%.
He expects the ringgit to lean towards depreciation following better demand for the US dollar.
However, the ringgit traded higher against major currencies at the opening.
It strengthened against the euro to 4.6914/7056 from 4.6939/6972 at yesterday's close, higher against the Japanese yen at 2.8752/8841 from 2.8792/8815, but down against the British pound to 5.6038/6208 from 5.6012/6052.
The local note posted a mixed performance against Asean currencies.
It appreciated against the Thai baht to 12.7886/8354 from 12.8010/8157 yesterday and rose against the Singapore dollar to 3.2797/2901 from 3.2822/2848.
The ringgit eased against the Philippine peso to 7.52/7.55 from yesterday's close of 7.50/7.52 and also fell against the Indonesian rupiah at 274.2/275.2 compared to yesterday's close of 273.8/274.1
