Kuala lumpur: The ringgit extended its gains on Wednesday, opening higher against the US dollar, supported by positive sentiment following the success of the 47th ASEAN Summit and Related Summits in Kuala Lumpur, an analyst said.

According to BERNAMA News Agency, at 8 am, the ringgit appreciated to 4.1870/2065 per US dollar from Tuesday's close of 4.1935/1985. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the ASEAN Summit had reinforced regional stability and integration, which helped to strengthen market confidence. He mentioned that this reduced the market risk premium and contributed to the ringgit's appreciation.

Meanwhile, the US dollar index eased 0.12 percent to 98.667 points as the US Federal Reserve was widely expected to deliver a 25-basis-point rate cut when the Federal Open Market Committee (FOMC) concludes its meeting tonight. Optimism over a potential trade deal between the United States and China had also improved market sentiment. Dr Mohd Afzanizam added that the US Treasury bond yields for the three-month and five-year notes fell, which boded well for the ringgit's performance.

The local currency was expected to remain on a firmer footing, with the dollar-ringgit likely to trade between RM4.19 and RM4.20. At the opening, the ringgit traded higher against most major currencies. It rose against the British pound, climbed versus the euro, and inched up against the Japanese yen.

The ringgit also strengthened against most ASEAN currencies, improving against the Singapore dollar, appreciating vis-a-vis the Indonesian rupiah, and being marginally higher against the Philippine peso. However, it eased against the Thai baht.