The ringgit strengthened against the US dollar in early trade after hitting a near three-week high last Friday, supported by softer-than-expected US economic data released last week.
At 10.10am, the ringgit was at 4.4100 against the USD from its close of 4.4165 at the end of last Friday.
Bank Muamalat Malaysia Bhd Chief Economist Afzanizam Abdul Rashid said the local currency was expected to maintain its positive trend today after the US dollar broke through its previous support level of RM4.43 last week.
He added that Malaysia's core inflation rate released last week saw an increase to 1.8% in January from 1.6%, led by higher food inflation and a gradual increase in the transportation sub-index.
In addition, Bank Negara Malaysia (BNM) is likely to keep the Overnight Policy Rate (OPR) steady at 3% throughout the year to strike the right balance between containing inflation risks and supporting growth, especially investment.
He added that with concerns about inflation risks in the background, the ringgit could hover around RM4.40 to RM4.41 against the US dollar.
Meanwhile, the ringgit was mostly traded higher against major currencies.
The ringgit appreciated against the British pound to 5.5828/5936 from 5.5851/5895 and rose against the euro to 4.6232/6321 from 4.6236/6273 from last week's close, but it depreciated against the Japanese yen to 2.9547/9606 from 2.9547/9606 previously.
The ringgit weakened against most Asean currencies.
It fell against the Singapore dollar to 3.3039/3108 from 3.3021/3049 and fell against the Thai baht to 13.1447/1818 from 13.1354/1528.
The local currency was marginally higher against the Indonesian rupiah at 270.5/271.2 from 270.7/271.0 and unchanged against the Philippine peso at 7.62/7.63 from 7.62/7.63 last Friday's close.
