The ringgit opened strongly against the US dollar at the end of the week after the US Federal Reserve (Fed) cut interest rates by 25 basis points during the FOMC meeting earlier this morning.
At 10.30 am, the ringgit was at 4.3820 which is 0.41% stronger against the US dollar than it closed at 4.4020 on Thursday.
Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid said the Fed Funds Rate is currently between 4.50% and 4.75%.
The 10-year US Treasury yield fell 11 basis points to 4.31% and the US Dollar Index (DXY) declined 0.55% to 104.508 points.
He also said that the Fed's decision was made despite the uncertainty surrounding President Donald Trump's policy next year, which is seen as potentially causing an increase in inflation.
Meanwhile, the ringgit is weaker against a group of major currencies.
It fell against the British pound to 5.6943/7255 from Thursday's close of 5.6821/6879, eased against the Japanese yen to 2.8637/8795 from 2.8597/8629 and slightly lower against the euro at 4.7347/7606 from 4.7317/7365 previously.
Local notes traded mixed against Asean currencies.
It rose against the Philippine peso to 7.47/7.51 from 7.49/7.51 yesterday and rose against the Indonesian rupiah to 278.6/280.3 from 279.6/280.0 previously.
However, it weakened against the Singapore dollar to 3.3207/3394 from 3.3178/3216 at yesterday's close and depreciated against the Thai baht to 12.8947/12.9767 from 12.8290/8492 previously.
