Kuala lumpur: The ringgit opened firmer against the US dollar on Friday, buoyed by optimism surrounding a potential shift in US monetary policy and an improving outlook for emerging-market currencies. At 8 am, the ringgit appreciated to 4.1230/1335 against the greenback, compared to the previous day's close of 4.1305/1345.

According to BERNAMA News Agency, Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the US Dollar Index was just below the 100-point threshold amid increasing expectations for a US Federal Reserve rate cut in December. "Market pricing for a December rate cut has surged to 85 per cent, compared with less than 40 per cent a week ago," he stated, mentioning that the changing expectations had already caused US Treasury yields to decline.

Dr. Mohd Afzanizam explained that since November 14, the yields on 2-year and 10-year US Treasuries had decreased by 17 and 14 basis points, now standing at 3.45 per cent and 4.00 per cent, respectively. He highlighted that this trend could further bolster emerging-market currencies, including the ringgit. "Today, we expect the ringgit to remain within a narrow range of RM4.12 to RM4.13 as traders monitor upcoming US data ahead of the Federal Open Market Committee meeting," he added.

In early trading, the ringgit's performance varied against major currencies. It strengthened against the yen to 2.6379/6448 from 2.6417/6444 at Thursday's close, but weakened against the British pound to 5.4589/4728 from 5.4576/4629 and remained largely unchanged against the euro at 4.7823/7944 from 4.7823/7869.

The ringgit also showed gains against ASEAN currencies. It rose against the Singapore dollar to 3.1794/1877 from 3.1817/1850 at the previous day's close and appreciated against the Thai baht to 12.7904/8342 from 12.8097/8285. Additionally, it improved against the Indonesian rupiah to 247.8/248.5 from 248.3/248.6 and against the Philippine peso to 7.01/7.03 from 7.02/7.04.