The ringgit traded lower against the US dollar in early trading on Friday following a lack of buying interest as the US dollar Index (DXY) bounced back from recent losses.
At exactly 10.50 am, the ringgit was at 4.7120 which is down against the USD from Thursday's close of 4.7070.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Afzanizam Rashid said that the DXY had shed 105 points as traders dragged the fall of the euro following heightened anxiety during the French election.
With that, the USD/MYR position is expected to move in a permanent range throughout the day.
He also said that the shift of the US Federal Reserve (Fed) towards encouraging economic growth may become more significant during the second half of 2024 as the current economic data is weakening amid the ongoing disinflation trend.
Therefore, the positive outlook for the ringgit in the second half of the year remains.
The local currency traded relatively mixed against the world's major currency groups.
The local unit fell against the Japanese yen to 2.9982/3.0015 from Thursday's close of 2.9945/2.9972 but rose against the euro to 5.0610/5.0663 from 5.0840/0884 and rose against the British pound to 6.01047/6.0104 earlier.
Meanwhile, the ringgit traded mixed compared to Asean regional peers.
The local currency was marginally lower against the Indonesian rupiah to 289.6/290.1 from 289.2/289.6 at Thursday's close and weaker against the Philippine peso at 8.04/8.05 from 8.03/8.04 previously.
However, it rose against the Singapore dollar to 3.4880/3.4919 from 3.4887/3.4920 and rose against the Thai baht to 12.8185/12.8370 from 12.8386/12.8540.
