The ringgit opened higher against the US dollar on Wednesday amid cautious sentiment following current global economic developments.
At 10.30am, the ringgit was at 4.4650 which is 0.13% lower against the USD than it closed at 4.4705 at the end of Tuesday.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Mohd Afzanizam Abdul Rashid said the market is still wary of President Donald Trump's second term regarding the current geopolitical situation and the impact on the economic outlook for 2025.
Accordingly, he said USD/MYR trading will continue to remain in a cautious mode even though the ringgit is at a high position waiting for the Fed to likely reduce rates in the near term.
Meanwhile, the ringgit traded mostly lower against a group of major currencies.
It eased against the British pound to 5.6710/6812 from 5.6449/6506 at Tuesday's close and eased against the euro to 4.7387/7472 from 4.7150/7198 yesterday but improved against the Japanese yen to 2.8871/8909 from 2.8871/9926.
At the same time, the local unit traded mixed against regional currencies.
It rose against the Philippine peso to 7.59/7.61 from 7.60/7.61 at Tuesday's close and strengthened against the Indonesian rupiah to 281.9/282.5 from 282.1/282.5 yesterday.
Conversely, it weakened against the Singapore dollar to 3.3412/3477 from 3.3345/3381 yesterday and eased against the Thai baht to 12.9388/9728 from 12.9201/9384 previously.
