Kuala lumpur: The ringgit opened firmer against the US dollar and most major currencies on Thursday, tracking expectations of United States (US) interest rate cuts after softer economic data. At 8 am, the local unit stood at 4.2085/2300 against the greenback, up from Wednesday's close of 4.2185/2220.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that the US Producer Price Index (PPI) eased to 2.6 percent in August, which was below market forecasts of 3.3 percent. This has strengthened the case for a Federal Reserve (Fed) rate cut next week. He further pointed out that the US Consumer Price Index (CPI), due later tonight, would be another key data point ahead of the Fed's policy decision.

'Consensus estimates show CPI rising to 2.9 percent in August from 2.7 percent. On that note, the dollar-ringgit is expected to range between RM4.20 and RM4.22 today as traders remain cautious ahead of the Federal Open Market Committee (FOMC) meeting next week,' he told Bernama.

The ringgit showed strength by appreciating to 2.8555/8703 against the yen from 2.8614/8639 at Wednesday's close, moving to 5.6949/7240 against the pound from 5.7127/7174, and rising to 4.9244/9495 against the euro from 4.9416/9457.

Additionally, the local currency traded higher against ASEAN currencies, advancing to 3.2820/2993 versus the Singapore dollar from 3.2883/2912 and edging up to 13.2447/3199 against the baht from 13.2699/2872. The local note remained relatively stable at 255.5/256.9 against the rupiah from 256.1/256.4, and steady at 7.37/7.41 against the peso from 7.38/7.39 previously.