The US PCE inflation data will be the key focus in the near-term as expectations of further US interest rate hikes gained traction, says analyst.
At 6pm, the local currency appreciated to 4.1160/4.1200 against the greenback from 4.1355/4.1400 at yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US PCE inflation data will be the key focus in the near-term, as expectations of further US interest rate hikes gained traction following last week’s Federal Open Market Committee (FOMC) meeting.
“Nonetheless, crude oil prices are making headway, with Brent crude oil currently lingering at US$72.86 per barrel, a 38.3% decline from the previous high of US$118.03 per barrel on April 29.
“On that note, the US inflation rate is expected to ease in June, which would alter the course of monetary policy should crude oil prices continue to normalise towards the pre-war level of around US$60-US$70 per barrel,” he told Bernama.
At the close, the ringgit was stronger against a basket of major currencies.
It gained against the British pound to 5.4261/5.4314 from 5.4481/5.4540 at yesterday’s close, rose versus the euro to 4.6762/4.6807 from 4.6921/4.6972 yesterday, and was firmer vis-à-vis the Japanese yen at 2.5437/2.5464 from 2.5567/2.5595 previously.
The local currency was also firmer against regional currencies.
It appreciated against the Singapore dollar to 3.1742/3.1775 from 3.1848/3.1885 at yesterday’s close and increased versus the Thai baht to 12.3370/12.3538 from 12.3658/12.3845 previously.
The ringgit also advanced versus the Indonesian rupiah, rising to 229.4/229.7 from 230.3/230.7 yesterday and strengthened against the Philippine peso to 6.71/6.72 from 6.72/6.73 previously. - FMT
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