SPI Asset Management managing director Stephen Innes said the firmer ringgit may also be attributed to the local note’s oversold condition, higher energy prices, and a relatively stable domestic risk environment.

The US economy posted a growth of 1.6% in Q1 versus a consensus forecast of 2.5%.

The overnight US data also revealed higher-than-expected inflation alongside the weaker-than-anticipated growth, triggering a sell-off in risk assets and a spike in US Treasury yields.

“This scenario typically spells trouble for the ringgit. However, the ringgit experienced a relatively uneventful day and closed a touch stronger,” he told Bernama.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the lower-than-expected US GDP data could have reignited hopes for an interest rate cut in the US.

At 6pm, the ringgit improved to 4.7650/4.7710 against the greenback from yesterday’s close of 4.7745/4.7775.

The ringgit traded higher against a basket of major currencies.

It rose vis-a-vis the British pound to 5.9644/5.9719 from 5.9748/5.9786 yesterday, went higher versus the Japanese yen to 3.0408/3.0451 from 3.0677/3.0698 and improved against the euro to 5.1157/5.1221 from 5.1211/5.1243 previously.

The ringgit also traded mostly higher against Asean currencies.

It appreciated versus the Thai baht to 12.8902/12.9120 against 12.8939/12.9087 at yesterday’s close and was flat versus the Philippine peso at 8.26/8.27.

The local currency edged up vis-a-vis the Indonesian rupiah to 293.9/294.4 from 294.9/295.2 and increased against the Singapore dollar to 3.5021/3.5068 from 3.5120/3.5144.