Kuala lumpur: The ringgit opened higher at the 4.07 level against the US dollar, the best level seen in close to five years, despite a firmer US Dollar Index (DXY), as market participants continued to assess the US Federal Reserve's (Fed) policy outlook. At 8 am, the ringgit strengthened to 4.0795/0915 against the greenback, from 4.0855/0940 at yesterday's close. The level was last seen on March 3, 2021, when it ended the session at 4.0720 against the US dollar.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index (DXY) rose 0.25 percent to 98.389 points, as recent comments from Fed officials indicate they are not in a hurry to reduce rates. He highlighted that Fed Governor Christopher Waller suggested the prevailing policy rate remains 50 to 100 basis points above its neutral rate, indicating room for the Fed to cut it further.

Waller reportedly mentioned there is no urgency to adjust policy immediately, given that the labour market is weakening at a gradual pace. "Yesterday, the ringgit closed 0.10 percent lower against the US dollar. Therefore, expect the ringgit to exhibit range-bound trade between RM4.08 and RM4.09 today," Mohd Afzanizam told Bernama.

At the opening, the ringgit was mostly lower against a basket of major currencies. It fell against the British pound to 5.4555/4716 from 5.4439/4553 at Wednesday's close and was lower against the euro at 4.7897/8038 from 4.7866/7965. However, the ringgit gained against the Japanese yen, rising to 2.6236/6315 from 2.6267/6321 yesterday.

In contrast, the local currency strengthened against its ASEAN peers. It appreciated against the Singapore dollar to 3.1592/1688 from 3.1614/1682, improved versus the Thai baht to 12.9467/9930 from 12.9657/9989, advanced against the Indonesian rupiah to 244.3/245.2 from 244.7/245.3, and rose against the Philippine peso to 6.95/6.97 from 6.96/6.97 previously.