The ringgit opened stronger against the US dollar after weak economic data showed the case for a potential rate cut by the Federal Reserve (Fed) and the prospect of a cut in the Fed Funds Rate remained strong.
At 10.20am, the ringgit was at 4.4200, the same as it closed at the end of trading on Wednesday.
According to Bank Muamalat Malaysia Bhd Chief Economist Dr Afzanizam, the ringgit could test the RM4.40 level today based on improving market conditions.
He said the US Dollar Index (DXY) fell 0.31% to 107.62 points as business sentiment in the services sector declined last month.
The Institute for Supply Management (ISM) index for the non-manufacturing sector came in at 52.8 points in January, lower than the consensus estimate of 54.2 points, which would strengthen the case for a rate cut by the Fed this year.
In addition, a one-month delay in tariff hikes for Canada and Mexico also helped ease concerns about a sharp price hike.
Meanwhile, the ringgit was mostly traded higher against other major currencies.
It appreciated against the euro to 4.5912/4.6068 from 4.5990/4.6053 at Wednesday's close and rose against the British pound to 5.5196/5.5384 from 5.5321/5.5396 yesterday but depreciated against the Japanese yen to 2.8941/2.9042 from 2.8930/2.8972 previously.
The local note was also higher against Asean currencies.
It rose against the Singapore dollar to 3.2738/3.2854 from 3.2746/3.2792 at yesterday's close and rose against the Thai baht to 13.1461/13.2038 from 13.1602/13.1844 previously.
The ringgit strengthened against the Indonesian rupiah to 270.9/272.0 from 271.2/271.8 at Wednesday's close and rose against the Philippine peso to 7.60/7.64 from 7.61/7.63 previously
