Ringgit closes lower on caution ahead of US CPI data

 

KUALA LUMPUR: 

The ringgit closed lower against the greenback for the third consecutive day on Wednesday as cautious investors stayed on the sidelines ahead of the US consumer price index (CPI) report due later tonight.

At 6 pm, the local currency dropped to 4.4300/4355 against the US dollar, compared to yesterday’s close of 4.4250/4300.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) has continued to stay elevated at around 106.6 points ahead of the US CPI.

“Traders are wary about US inflation especially when the Federal Open Market Committee’s (FOMC) (meeting) next week would have important implications on the monetary easing trajectory for 2025,” he told Bernama.

The ringgit traded higher against other major currencies.

It strengthened versus the British pound to 5.6389/6459 from 5.6466/6537, appreciated against the euro to 4.6515/6573 from 4.6595/6648 and gained against the Japanese yen to 2.9013/9051 from 2.9189/9224 at Tuesday’s close.

The local currency also traded higher against ASEAN currencies.

It climbed against the Singapore dollar to 3.2937/2980 versus 3.2988/3028 on Tuesday and went up versus the Thai baht to 13.0640/0875 from 13.1006/1236.

The ringgit also climbed against the Philippine peso to 7.59/7.61 from 7.63/7.64 and also edged up against the Indonesian rupiah to 278.2/278.7 from 278.7/279.2 previously. - FMT