The local currency extended its positive run for the third day in a row but investors remained cautious on the stock market, putting more pressure on the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI).

The ringgit received a boost on expectations that the US Federal Reserve’s open market committee will go for a lower interest rate hike of 25 basis points (bps) from an earlier expected 50bps increase when it meets next week.

At 9am, the local note appreciated to 4.2510/4.2600 against the US dollar from yesterday’s close of 4.2575/4.2625.

But Bursa fell further in response to the unimpressive performance of US stocks overnight. Wall Street ended trading with little change as investors tried to digest the latest batch of corporate results ahead of the release of critical economic data.

The FBM KLCI opened the day at 1,497.41, which was 2.04 points lower than its close of 1,499.45 yesterday, but dropped another 0.62 of-a-point to settle at 1,496.79 at 9.07am.