Kuala lumpur: The ringgit opened higher against a basket of major currencies, including the US dollar, ahead of the release of key United States economic data later tonight that could reinforce expectations for the US Federal Reserve to keep interest rates unchanged, said an analyst. At 8 am, the local unit inched up to 3.9200/9300 against the greenback, compared with Monday's close of 3.9220/9260.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US consumer price index (CPI) for April will be announced tonight, with headline and core CPI expected to increase by 3.7 percent and 2.7 percent respectively. This data could indicate that the Fed may keep the rate steady, while the likelihood of an interest rate cut this year remains low. Consequently, the ringgit is expected to remain in sideways trading mode in the near term as geopolitical risks persist, notably with a high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping set to take place this week.

At the opening, the ringgit traded mostly higher against a basket of major currencies. It appreciated against the Japanese yen to 2.4925/4990 from 2.4955/4983 at Monday's close and strengthened versus the British pound to 5.3312/3448 from 5.3331/3383 yesterday. However, it eased against the euro to 4.6162/6280 from 4.6150/6197 previously.

Simultaneously, the local currency showed mixed performance against regional peers. It rose against the Singapore dollar to 3.0883/0964 from 3.0887/0921 at the close yesterday and gained against the Indonesian rupiah to 225.1/225.7 from 225.2/225.5 previously. The ringgit was almost flat against the Philippine peso, maintaining at 6.41/6.43 from yesterday's close of 6.41/6.42, and weakened versus the Thai baht to 12.1374/1759 from 12.0900/1083 previously.