The ringgit opened higher today after the United States (US) avoided the closure of the government and suggested better risk of risk of risk leading to weaker US dollars.
The US avoided the risk of the government's closure after the Senate approved the Republican -supported move on Friday to finance the government for the next six months.
At 9.20am, the ringgit was at 4.4380 at a positive 0.11% against the US dollar than it closed 4.4410 last Friday.
Bank Muamalat Malaysia Chief Economy, Dr Afzanizam Abdul Rashid said weak US economic data also contributed to positive sentiment for the local currency today.
It is reported that the University of Michigan's consumer sentiment index has dropped drastically to 57.9 points in March.
This is the third consecutive and lowest decrease since November 2022.
He said this shows that US consumers are expected to spend cautiously because prices of goods, especially for imports are likely to increase following tariff measures imposed on Canada, Mexico and China.
In addition, Afzanizam said traders and investors would observe the two -day Federal Open Market Committee (FOMC) meeting which would begin on March 18.
Although the Federal Fund Rate (FFR) is expected to remain at 4.50%, he said projections for FFR, inflation, growth and unemployment rate would be a major focus.
The ringgit is traded lower than a major bunch of currencies.
It dropped against the euro to 4.8306/8420 from 4.8194/8243 last Friday, dropped against the British pound to 5.7407/7543 from 5.7404/7463, and fell against the Japanese yen to 2.9888/9960 from 2.9809/9842.
Local notes are mixed compared to ASEAN currencies.
It fell against the Singapore dollar to 3.3292/3373 from 3.3241/3277 in the previous cover but strengthened against the Thai Baht to 13.1798/2228 from 13.1820/2020.
The ringgit also increased from Indonesia's rupiah to 271.5/272.2 from 271.6/272.0 and unchanged compared to the Philippine peso at 7.75/7.78 from 7.75/7.77
