The ringgit rose against the US dollar in early trade after the release of the minutes of the Federal Open Market Committee (FOMC) meeting.
At 10.10am, the ringgit was at 4.4360, stronger against the US dollar than it closed at 4.4410 at the close of trading on Wednesday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the minutes showed the US Fed remained unconvinced that inflation was moving sustainably towards its two per cent target despite the labour market remaining strong.
He added that they needed more evidence before they could cut rates and the Fed Funds Rate needed to be maintained to avoid the risk of higher inflation.
The minutes also supported the US dollar index (DXY) which rose from 106.880 in early US trade to 107.171 yesterday.
The market is now predicting that the Fed will implement only one interest rate cut this year compared to two previously.
Meanwhile, the ringgit was mostly traded higher against major currencies.
It strengthened against the euro to 4.6274/6378 from 4.6306/6348 and rose against the British pound to 5.5873/5999 from 5.5965/6016. However, it weakened against the Japanese yen to 2.9361/9431 from 2.9277/9305.
The ringgit also rose against most Asean currencies.
It rose against the Singapore dollar to 3.3063/3142 from 3.3068/3102, the Thai baht to 13.1540/1938 from 13.1769/1946 and the Indonesian rupiah to 271.9/272.7 from 272.0/272.4.
However, it was little changed against the Philippine peso at 7.64/7.66 from 7.64/7.65 on Tuesday.
