KUALA LUMPUR: The ringgit opened lower against the US dollar today, as investors remain cautious about the outlook for the Federal Reserve (Fed) rate cuts in the near term, said an analyst. 

At 8 am, the local currency depreciated to 4.700/4800 against the greenback, compared with Wednesday's close of 4.4685/4740.  

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiment remains unsettled regarding the trajectory of the US interest rate cuts, as the policies of US President-elect Donald Trump's second term continue to take shape and influence market sentiment.

"The US Dollar Index (DXY) continues to stay elevated at around 106 points in the absence of important US economic data yesterday," he told Bernama. 

Back home, the ringgit posted a slight gain yesterday against the greenback but made a sizeable appreciation against Asian currencies. 

Meanwhile, the ringgit traded higher against a basket of major currencies. 

It rose against the British pound to 5.6568/6694 from 5.6620/6690 at the close on Wednesday and appreciated against the euro to 4.7136/7242 from 4.7178/7236 yesterday. 

However, it declined against the Japanese yen to 2.8785/8853 from 2.8696/8733 previously. 

The local unit traded lower against ASEAN currencies. 

It was marginally lower against the Indonesian rupiah at 281.6/282.4 from 281.5/282.0 yesterday, slid versus the Singapore dollar to 3.3291/3368 from 3.3290/3333 and fell against the Thai baht to 12.8997/9375 from 12.8679/8889 previously. 

However, it was almost flat against the Philippine peso at 7.58/7.60 from 7.58/7.59 at Wednesday's close. 

- BERNAMA