KUALA LUMPUR: The ringgit opened higher against the US dollar in early trade today amid renewed buying interest, with investors flocking towards the local currency following the Thanksgiving holidays in the United States (US).
At 8.02 am, the ringgit was trading at 4.4350/4470 against the US dollar, strengthening from yesterday's close of 4.4440/4490.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index (DXY) has also declined from last week's level of 107.55, hovering around 106 points.
He believed that a confluence of factors has influenced the global market sentiment, and positive development in the Middle East may potentially contribute to improvements in the currency market.
"In the meantime, market sentiment could remain lacklustre and cautious on lack of catalyst. Therefore, the ringgit could trade in a narrow range today, possibly around RM4.43 to RM4.44," he told Bernama.
The ringgit traded lower against a basket of major currencies.
It weakened against the British pound to 5.6298/6450 from 5.6217/6280 yesterday, slipped against the euro to 4.6834/6960 from 4.6800/6852 and weakened vis-a-vis the Japanese yen to 2.9349/9431 from 2.9258/9293.
In contrast, the local unit traded better against ASEAN currencies.
It was marginally higher against the Singapore dollar at 3.3053/3147 from 3.3056/3095 at yesterday's close and rose against the Philippine peso to 7.56/7.58 from 7.57/7.58.
The local note also went up against the Thai baht to 12.8812/9292 from 12.8999/9211 on Thursday and rose against the Indonesian rupiah to 279.4/280.3 from 279.9/280.5 previously.