Ringgit extends loss after US CPI data release

 

KUALA LUMPUR: 

The ringgit closed lower against the US dollar for the fourth consecutive day today after the US consumer price index (CPI) rose the most in seven months, although it stood in line with forecasts.

The November US CPI expanded 2.7%, higher than the 2.6% the previous month.

Core CPI, on the other hand, sustained at 3.3% for the third consecutive month from 3.2% in August, suggesting the US inflation rate remained sticky.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the sticky inflation rate would mean that the US Federal Reserve (Fed) might want to shift its monetary easing strategy next year.

“This could mean less rate cuts or perhaps no rate cuts at all. It’s very dollar-positive now and therefore the ringgit could remain range-bound,” he told Bernama.

At 6pm, the local currency slid to 4.4350/4.4395 against the US dollar, compared to yesterday’s close of 4.4300/4.4355.

The ringgit traded lower against other major currencies.

It weakened versus the British pound to 5.6591/5.6648 from 5.6389/5.6459, declined against the euro to 4.6612/4.6659 from 4.6515/4.6573 and slipped against the Japanese yen to 2.9074/2.9106 from 2.9013/2.9051 at yesterday’s close.

The local currency also traded mostly lower against Asean currencies.

It narrowed against the Singapore dollar to 3.3008/3.3044 versus 3.2937/3.2980 yesterday, went down versus the Thai baht to 13.1058/13.1261 from 13.0640/13.0875 and fell against the Philippine peso to 7.61/7.62 from 7.59/7.61 previously.

The ringgit however, edged up against the Indonesian rupiah to 278.1/278.5 from 278.2/278.7 previously. - FMT