At 8am, the local note was traded at 4.2005/4.2180 versus the greenback from last Friday’s 4.2005/4.2070.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the Fed aims to ensure maximum employment, indicating a preference for expansion.

“On that note, traders and investors are sanguine on the economic outlook. In a way, there seems to be a risk-on mode which would augur well for the ringgit,” he added.

The local note had performed favourably following the 50 basis-point interest rate cut by the Fed on Sept 18.

Meanwhile, the ringgit traded mixed against a basket of major currencies.

The local note strengthened further vis-a-vis the Japanese yen to 2.9160/2.9284 from 2.9182/2.9229 at the close last Friday and was almost flat versus the euro at 4.6873/4.7069 from 4.6878/4.6950 last week, but fell further against the British pound to 5.5921/5.6154 from 5.5841/5.5928 at Friday’s closing.

The local note performed similarly against Asean currencies, slipping against the Singapore dollar to 3.2539/3.2677 from 3.2507/3.2559 at Friday’s close, and eased against the Thai baht to 12.7508/12.8137 from 12.7026/12.7288 previously.

The ringgit was almost flat against the Philippines’ peso and Indonesian rupiah, trading at 7.55/7.58 against the peso from 7.55/7.56 on Friday and at 277.2/278.5 versus the rupiah from 277.2/277.8 previously.