The $MYR/USD (MYRUSD.FX)$ opened stronger at 4.4325/4.4450 against the US dollar on Thursday, up from Wednesday's close of 4.4440/4.4465. This came as the $USD (USDindex.FX)$ softened by 0.91%, closing at 106.036 points.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid noted the ringgit has strengthened by 0.95% since Nov 14, improving from RM4.4855 to RM4.4432 on Wednesday, as the "Trump Trade" effect appeared to subside. Looking ahead, he opined the ringgit could gain further, although the outlook remains clouded by evolving US economic data.

He added, "The Federal Reserve may implement a quarter-point rate cut next month, but market concerns persist over the pace of monetary easing in 2025, particularly given the potential for higher inflation alongside the resilience of the US economy."

The release of US inflation data showed core Personal Consumption Expenditures (PCE) inflation increased to 2.8% in October, up from 2.7% in September, indicating sticky inflation levels. Afzanizam highlighted that the US economy continues to show strength, with robust employment conditions reflected in a decline in the four-week moving average of initial jobless claims.

Against other major currencies, the ringgit traded mostly lower. It weakened against the British pound to 5.6186/5.6345 from 5.5962/5.6044 and slipped against the euro to 4.6812/4.6944 from 4.6691/4.6759. However, it gained against the Japanese yen to 2.9288/2.9375 from 2.9311/2.9356.

The ringgit showed a mixed performance against Asean currencies. It edged higher against the Singapore dollar at 3.3054/3.3152 from 3.3055/3.3106 and rose against the Philippine peso to 7.55/7.57 from 7.56/7.57. Conversely, it weakened against the Thai baht to 12.8348/12.8803 from 12.8342/12.8597 and was nearly flat against the Indonesian rupiah at 278.1/279.0 from 278.6/279.1.