Kuala lumpur: The ringgit experienced a rebound against the US dollar at the opening of trading on Friday, driven by ongoing uncertainties in the United States that continued to impact the greenback. Dr Mohd Afzanizam Abdul Rashid, the chief economist at Bank Muamalat Malaysia Bhd, highlighted these developments.

According to BERNAMA News Agency, at 8 am, the ringgit stood at 3.9190/9410 against the US dollar, marking a strengthening from the previous day's close of 3.9275/9315. This opening level positioned the ringgit near its strongest point against the US dollar since April 2018, when it was at 3.9030.

Dr Mohd Afzanizam noted that the US Dollar Index (DXY) decreased by 0.28 percent to 96.175 points as President Trump continued to pressure the US Federal Reserve to reduce the Fed Funds Rate. "Trump has been consistently advocating for a substantial cut in interest rates by the central bank. He also mentioned plans to announce his nominee for Fed chairman next week, suggesting he would choose a candidate who supports his objective of lower policy rates," he explained to Bernama.

Yesterday, the ringgit depreciated by 0.23 percent to RM3.9295 after the Federal Reserve decided to maintain rates while providing a positive outlook on the US economy. Dr Mohd Afzanizam added, "Consequently, the ringgit could continue its upward trend amidst US uncertainties and a weaker dollar."

Additionally, the ringgit showed gains against a selection of major currencies and regional counterparts. It appreciated against the euro, Japanese yen, and British pound, while also strengthening against the Singapore dollar, Thai baht, Philippine peso, and Indonesian rupiah.