Kuala Lampur:The ringgit opened higher against a basket of major currencies but slightly lower against the US dollar, influenced by stronger-than-expected US economic data supporting the greenback.

According to BERNAMA News Agency, the ringgit edged down to 4.0790/0860 against the US dollar at 8 am, compared to Wednesday's close of 4.0785/0820. US final gross domestic product growth for the second quarter of 2026 surpassed expectations, registering 2.2 percent against a consensus estimate of 1.5 percent.

The Automatic Data Processing (ADP) employment change also increased to 90,000 in September, exceeding the market estimate of 73,000. As a result, expectations for an October rate hike have decreased, with odds falling from over 70 percent to below 50 percent.

Additionally, the Federal Reserve's preferred inflation gauge, the personal consumption expenditures (PCE) price index, remained steady at 3.4 percent in August, under the consensus estimate of 3.7 percent. The US Dollar Index (DXY) initially dropped to 101.05 points before rebounding to 101.37.

Market assessments regarding a potential rate hike in October have been reconsidered, though a decision is still uncertain due to the positive labor market data. The ringgit is anticipated to trade between RM4.08 and RM4.09 ahead of the US non-farm payrolls data release on Friday.

The ringgit strengthened against the euro to 4.6203/6282 from 4.6324/6363 at Wednesday's close, appreciated against the British pound to 5.4104/4197 from 5.4162/4209, and gained against the Japanese yen to 2.5887/5933 from 2.5969/5993.

In trading with ASEAN currencies, the ringgit rose against the Singapore dollar to 3.1917/1977 from 3.1943/1973, increased against the Thai baht to 12.1341/1611 from 12.1521/1666, and remained steady against the Indonesian rupiah at 227.9/228.4 compared to 227.9/228.2. The ringgit was unchanged against the Philippine peso at 6.51/6.52.