The ringgit opened lower against the US dollar on the first trading day of the year as market concerns over the potential decision by the US Federal Reserve (Fed) to cut interest rates in 2025.
At 10.00am, the ringgit was at 4.4740, down 0.08% against the USD from its close of 4.4690 on Tuesday.
The market was closed on Wednesday for New Year's Day.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was the best performing currency in 2024, gaining 2.72% against the US dollar.
This was followed by the Hong Kong dollar and Thai baht, which gained 0.55% and 0.13% respectively.
The positive performance was driven by the Fed's action as the market was cautious in the first half of 2024 with interest rate cuts starting in September.
However, global currencies weakened against the US dollar after the Fed turned more hawkish in December and revised its stance to project just two rate cuts in 2025.
Meanwhile, the ringgit was higher against other major currencies.
It appreciated against the Japanese yen to 2.8338/8408 from Tuesday's close of 2.8529/8566, rose against the British pound to 5.5960/6091 from 5.6095/6164 and rose against the euro to 4.6269/6376 from 4.6269/6378.
The local note also traded mostly better against Asean currencies.
It strengthened against the Singapore dollar to 3.2730/2812 from 3.2824/2867 and rose against the Thai baht to 13.0302/0726 from 13.0566/0830.
However, it is slightly lower against the Indonesian rupiah at 277.0/277.8 from 276.9/277.5 and slightly higher against the Philippine peso at 7.69/7.71 from 7.70/7.72 previously.
