Kuala lumpur: The ringgit opened marginally lower against the US dollar on Friday as stronger-than-expected US economic data boosted the greenback. On another front, the reopening of the Strait of Hormuz saw risk appetite improving, which limited the ringgit's decline. At 8 am, the local currency fell to 4.1170/1270 against the greenback from 4.1160/1200 at yesterday's close.

According to BERNAMA News Agency, the US reported a better-than-expected first-quarter gross domestic product (GDP) growth of 2.1 percent, exceeding the consensus forecast of 1.6 percent. Meanwhile, the personal consumption expenditures (PCE) inflation rate came in at 4.1 percent in May, aligning with market expectations. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index (DXY) fell 0.18 percent to 101.431 points after the PCE data was released, representing two consecutive quarters of sub-one percent growth. This trend suggests sluggish growth in consumer spending.

As such, Dr Mohd Afzanizam observed that the rally in the US dollar might not be sustainable, especially considering the context of lower crude oil prices following the 60-day timeline for peace deal negotiations between the US and Iran. At the opening, the ringgit traded weaker against a basket of major currencies. It fell against the British pound to 5.4295/4427 from 5.4261/4314 at Thursday's close, declined versus the euro to 4.6777/6891 from 4.6762/6807 yesterday, and eased vis- -vis the Japanese yen at 2.5445/5508 from 2.5437/5464 previously.

The local note was traded almost flat against regional currencies. It opened flat against the Singapore dollar at 3.1742/1824 from 3.1742/1775 since yesterday's close, remained unchanged versus the Indonesian rupiah at 229.4/230.1 from 229.4/229.7, and was flat against the Philippine peso at 6.71/6.73 from 6.71/6.72 previously. However, the local note decreased versus the Thai baht to 12.3245/3618 from 12.3370/3538 previously.