Ringgit closes higher amid lacklustre US data release

 

KUALA LUMPUR: The ringgit closed higher against the US dollar driven by weak US housing data released in a joint report from the US Department of Housing and Urban Development and the US Census Bureau yesterday.

SPI Asset Management managing partner Stephen Innes said the housing data has reinforced the anticipation of US Federal Reserve (Fed) rate cuts in the second quarter of 2024.

“These expectations of rate cuts have been exerting downward pressure on US yields and appear to be favourable for the ringgit.

“However, I anticipate that any additional gains may be constrained leading up to the release of US personal consumption expenditures (PCE) inflation data later this week,” he told Bernama.

Nevertheless, he said that if the US inflation data turns out to be lower than expected, it could potentially lead to a strengthening of the ringgit, pushing it below the 4.65 level.

At 6pm, the ringgit rose to 4.6690/4.6725 against the greenback from yesterday’s close of 4.6785/4.6830.

At the close, the ringgit was traded mostly lower versus a basket of major currencies.

It appreciated vis-a-vis the euro at 5.1140/5.1178 from 5.1220/5.1269 at yesterday’s close but fell against the Japanese yen to 3.1430/3.1456 from 3.1334/3.1366 and went down against the British pound to 5.8965/5.9009 from 5.8963/5.9020. - FMT