This confirms that Fed has become more sanguine on the economic outlook, said Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid.
At 9 am, the local note improved versus the greenback to 4.1540/1570 from 4.1585/1605 at Friday's close.
Meanwhile, Kenanga Research, in its Ringgit Weekly Outlook, said the strengthening of the ringgit was attributed to the ringgit-US bond yield differential which widened to above 211 basis points (bps) at Friday’s closing despite a better-than-expected US non-farm payrolls reading.
"Besides, the local note’s strength will also be driven by a potential improvement in the Malaysian labour market, Industrial Production Index (IPI) and retail sales figures.
"However, a sharper-than-expected third quarter (3Q) 2021 gross domestic product (GDP) deceleration may limit further gains,” said the research firm.
At the opening, the ringgit was traded lower against a basket of major currencies.
The local note fell marginally against the Japanese yen to 3.6564/6593 from 3.6536/6553 at Friday's close and dropped against the Singapore dollar to 3.0750/0777 from 3.0729/0746.
It eased vis-a-vis the British pound to 5.6013/6053 from 5.5865/5892 previously and depreciated against the euro to 4.8024/8059 from 4.7997/8020 on Friday. - Bernama