The ringgit opened unchanged on Thursday amid a strengthening US dollar amid increased demand for the greenback following the US Federal Reserve (Fed) FOMC Meeting Minutes.
At 10.15am, the ringgit was at 4.5020 against the US dollar from its close of 4.5000 at the end of yesterday's trading.
The US Dollar Index (DXY) continued to rise to 108.994 points, up 0.42% from its previous close.
UOB Kay Hian Wealth Advisors head of investment research Sedek Jantan said the minutes released yesterday highlighted that the US Fed had included assumptions about potential changes in trade policy under the incoming administration of President-elect Donald Trump.
He added that the US Fed is assessing how expected policy shifts such as changes to trade agreements or the imposition of tariffs could affect the economy.
The US Fed's assessment should be an important consideration for the Trump 2.0 administration especially if it plans to implement higher trade tariffs.
While the objectives of the US Fed and the administration may differ, the increased tariffs could have a negative impact on economic growth.
Meanwhile, the ringgit opened mostly higher against a basket of major currencies.
It rose against the British pound to 5.5616/5.5739 from 5.6020/5.6083 and rose against the euro to 4.6413/4.6516 from 4.6431/4.6483. However, it fell against the Japanese yen to 2.8452/2.8517 from Wednesday's close of 2.8449/2.8482.
The local note was traded mixed against Asean currencies.
It rose against the Thai baht to 12.9863/13.0260 from 12.9949/13.0168 at the previous close and was higher against the Singapore dollar to 3.2892/3.2968 from 3.2919/3.2958.
The ringgit was little changed against the Indonesian rupiah at 277.5/278.3 from 277.5/278.0 and also against the Philippine peso at 7.70/7.73 from 7.70/7.72 on Wednesday.
