Kuala lumpur: The ringgit opened lower against the US dollar amid cautious investor sentiment ahead of the second quarter 2025 gross domestic product (GDP) announcement later today and a stronger US dollar. At 8 am, the local note depreciated to 4.2100/2210 from Thursday's close of 4.2090/2145.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US dollar received a boost last night as the inflation rate at the producer's level was rising at a fast clip. He explained that the decrease in unemployment benefit applications last week suggested a healthy labor market. The July US Producer Price Index (PPI) rose 3.3 percent year-on-year, surpassing the 2.5 percent forecast, while core PPI climbed to 3.7 percent versus 2.9 percent. The US Initial Jobless Claims were slightly lower at 224,000 compared to the 225,000 estimates.

Following these developments, the US Dollar Index (DXY) increased by 0.42 percent to 98.254 points as traders adjusted their expectations regarding an interest rate cut by the US Federal Reserve (Fed) in the next Federal Open Market Committee meeting. On the local front, Mohd Afzanizam stated that the ringgit is expected to range between 4.21 and 4.23 against the US dollar today, citing overwhelming temptations to lock in profits amid uncertainties over the US Fed decision.

The USD-MYR exhibited volatility yesterday, reaching RM4.1858 during the morning session before weakening to RM4.2118. Mohd Afzanizam pointed out that RM4.20 serves as a psychological level, with the USD-MYR momentarily surpassing this threshold.

At today's opening, the ringgit ended higher against major currencies. It gained against the euro, rose versus the Japanese yen, and improved vis-a-vis the British pound. Meanwhile, the ringgit traded mixed against regional peers, strengthening versus the Singapore dollar and Thai baht, but inching down against the Indonesian rupiah and remaining nearly flat against the Philippine peso.