KUALA LUMPUR: The ringgit extended its gains from last week, opening stronger against the US dollar on Monday, buoyed by sustained positive sentiment towards the local currency, according to an analyst.

At 8:04 a.m., the ringgit was trading at 4.1150/1280, up from Friday’s close of 4.1230/1280.

Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, stated that the ringgit is expected to maintain its positive momentum, although some traders may opt to lock in profits after its recent broad-based appreciation.

On the global front, he noted mixed economic signals from the United States. While the headline personal consumption expenditures (PCE) price index eased to 2.2% in August, the core PCE remained steady at 2.7%.

Despite this, the US Federal Reserve is anticipated to continue its monetary easing strategy in November and December.

"With that in mind, this week's attention will be on US data, including the ISM Index for manufacturing and services, as well as key labor market indicators such as the job openings and labor turnover survey (JOLTS), ADP employment change, and nonfarm payroll (NFP)," he told Bernama.

Mohd Afzanizam pointed out that the immediate support level for the ringgit is RM4.0728, with the currency possibly trending in that direction.

The ringgit traded mostly stronger against major currencies.

It saw a slight decline against the Japanese yen, closing at 2.8833/8926 compared to 2.8804/8841 on Friday.

However, it strengthened against the euro, ending at 4.5960/6106 from 4.6009/6064, and advanced against the British pound, finishing at 5.5063/5237 from 5.5178/5245 last week.

The local currency also improved against ASEAN currencies.

It inched up against the Singapore dollar to 3.2136/2240 from 3.2146/2187 at Friday’s close and slightly strengthened against the Philippine peso to 7.34/7.37 from 7.35/7.37.

Additionally, the ringgit improved against the Indonesian rupiah, trading at 272.0/273.0 from 272.5/273.0 last week, and rose to 12.7045/7553 from 12.7202/7407 against the Thai baht.