KUALA LUMPUR: The ringgit opened marginally higher against the US dollar as the market participants await several key economic data and events this week.
At 8.02 am, the local currency rose slightly to 4.3485/3595 versus the greenback from Monday's close of 4.3550/3600.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that profit-taking activities may occur in light of the recent steep appreciation of the ringgit.
"The odds for the United States (US) rate cut in September continue to remain elevated, suggesting that the Federal Reserve is on track to begin its monetary easing cycle this month," he told Bernama.
Mohd Afzanizam said the US Institute for Supply Management (ISM) will release data tonight for the US manufacturing sector, which will be monitored closely after the ISM manufacturing purchasing managers' index (PMI) fell drastically in July to 46.8.
He also noted that consensus estimates showed the index would improve to 47.5 in August.
"As such, expect the USD/MYR to remain sideways today as traders await for the key data points to be unveiled this week," he added.
The ringgit traded higher against a basket of major currencies this morning.
The local currency rose versus the Japanese yen to 2.9622/9699 from 2.9688/9725 on Monday, was higher vis-a-vis the euro to 4.8121/8242 from 4.8197/8252 and firmed against the British pound to 5.7144/7288 from 5.7203/7269 previously.
Meanwhile, the ringgit traded mostly higher against Asean currencies.
The local note strengthened against the Singapore dollar to 3.3266/3352 from 3.3321/3361 and appreciated vis-a-vis the Thai baht to 12.7183/7583 from 12.7228/7429 previously.
It climbed against the Philippine peso to 7.71/7.73 from 7.72/7.73 yesterday but was almost flat versus the Indonesian rupiah at 280.0/280.9 from 280.4/280.9.