The ringgit rose against the US dollar in early trade on Thursday, boosted by improved buying interest in the domestic currency despite a stronger US Dollar Index (DXY).
At 9.30am, the ringgit was at 4.4300, down 0.09% against the US dollar from its close of 4.4260 on Wednesday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the DXY rose to 103.584 but remained low.
Accordingly, there could be a positive spillover effect on emerging market currencies, including the ringgit, which could linger around RM4.41 to RM4.42 today.
Mohd Afzanizam attributed the ringgit's performance to the latest US economic data, particularly the lower-than-expected consumer price index (CPI) which came in at 2.8% in February, below the consensus forecast of 2.9%.
The latest inflation data raised hopes that the US Fed may be more inclined to ease monetary policy to stabilise the economy.
With the Federal Open Market Committee (FOMC) meeting scheduled for March 18-19, he added that investors will be closely monitoring the dot plot and Fed Funds Rate projections to gauge if expectations of three or four rate cuts this year are in line with market sentiment.
Meanwhile, the local currency also posted gains against a basket of major currencies.
It rose to 2.9767/9875 against the Japanese yen from 2.9775/9804, rose to 5.7236/7437 against the British pound from 5.7255/7306 and rose against the euro at 4.8057/8226 from 4.8301/8345 previously.
Similarly, the ringgit traded mostly higher against Asean currencies.
It rose to 3.3138/3257 against the Singapore dollar from 3.3181/3213, strengthened to 268.3/269.4 against the Indonesian rupiah from 269.0/269.3, and edged up to 7.69/7.73 against the Philippine peso from 7.311/7.31.
However, it depreciated slightly against the Thai baht to 13.0695/1235 from 13.0688/0868.
