The ringgit extended its decline against the United States (US) dollar with the DXY index rising to 105,009 points, a 1.5% increase from the previous daily close.
At 10.20 am, the ringgit was at 4.4150 which is 0.34% lower against the US dollar than it closed at 4.4000 at Wednesday's close.
Bank Muamalat Malaysia Bhd Chief Economist Afzanizam Rashid said Donald Trump's return to the US presidency has spurred increased demand for the US dollar and equities.
He noted that the 10-year US Treasury yield rose 16 basis points to 4.43% signaling a risky mode in financial markets.
President-elect Trump is expected to favor populist measures that could spur higher domestic demand and corporate income growth.
The outlook raises questions about how the US Federal Reserve (Fed) will approach monetary policy amid these developments given the potential implications for the direction of the next policy.
The market expects emerging market currencies including the ringgit to remain weak and cautious.
The Federal Open Market Committee (FOMC) meeting early Friday morning will be a key decision as market participants closely monitor accompanying statements on interest rate decisions.
Meanwhile, the ringgit is stronger against a group of major currencies.
It rose against the British pound to 5.6674/5.7119 from 5.6751/5.6841, rose against the Japanese yen to 2.8500/2.8727 from 2.8558/2.8606 yesterday and rose against the euro to 4.7215/4.7586 from 4.7313/4.7388.
The local note traded mostly higher against Asean currencies.
It strengthened against the Singapore dollar to 3.2997/3.3258 from 3.3073/3.3120, appreciated against the Thai baht to 12.7907/12.9015 from 12.8768/12.9048 and rose against the Philippine peso at 7.569 to 7.49/7.56 from 7.50/7.51.
The ringgit was unchanged against the Indonesian rupiah at 277.8/280.1 from 277.8/278.4
