“The release of the US consumer price index (CPI) tonight is quite important and could determine the direction of US interest rates this year,” he told Bernama.
Afzanizam said the US Federal Reserve (Fed) might want to ease its policy rate further to counter a possible recession in the US economy.
“Additionally, the regional equities market, along with the FTSE Bursa Malaysia KLCI (FBM KLCI), have recorded close to a 10% decline on a year-to-date basis, signalling that the risk-off mode is still pervasive,” he added.
Meanwhile, SPI Asset Management managing partner Stephen Innes said the ringgit came under pressure today, weighed down by trade war jitters, rising US yields, and pre-US CPI positioning, with the markets bracing for a strong inflation print that could send yields higher.
“With the April 2 reciprocal tariff day reaching closer, expect risk appetite to stay jittery, especially with the US-China trade tensions heating up.
“The next few weeks could see even choppier price action as investors recalibrate for escalating policy risks,” he added.
At 6pm, the ringgit dropped to 4.4260/4.4300 against the greenback from yesterday’s close of 4.4100/4.4175.
The ringgit traded mostly lower against a basket of major currencies.
It rose versus the Japanese yen to 2.9775/2.9804 from 2.9921/2.9974 at yesterday’s close but dropped against the British pound to 5.7255/5.7306 from 5.7035/5.7132 and depreciated vis-a-vis the euro to 4.8301/4.8345 from 4.8091/4.8173 previously.
The local currency traded lower against Asean currencies.
It dipped versus the Singapore dollar to 3.3181/3.3213 from yesterday’s closing of 3.3118/3.3177, slipped against the Thai baht to 13.0688/13.0868 from 13.0415/13.0695 and edged lower vis-a-vis the Indonesian rupiah to 269/269.3 from 268.7/269.3 previously.
The ringgit was also lower versus the Philippine peso at 7.71/7.73 from yesterday’s closing of 7.70/7.72. - FMT
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