Ringgit ends higher against US dollar, snaps 3-day losing streak

KUALA LUMPUR: The ringgit snapped a three-day losing streak to end higher against the US dollar today as the greenback retreated ahead of the release of the US Consumer Price Index (CPI) data later today, analysts said.

At 6pm, the local note rose to 4.4065/4.4120 versus the greenback from Tuesday’s close of 4.4160/4.4210.

SPI Asset Management managing director Stephen Innes said the ringgit had made some headway today as the broader US dollar weakened with all eyes on tonight’s US CPI data.

“But with investors acknowledging that growth and inflation will likely slow for the rest of the year, we think any dollar strength as a result of a hotter inflation print should have faded.

“The Federal Reserve (Fed) will ultimately need to address the broader adverse growth shocks from tighter lending standards as a result of the US bank mini-crisis,” he told Bernama.

In contrast to the Fed, Innes said, the People’s Bank of China is not facing either of these headwinds, allowing policymakers to focus on domestic pro-growth policies when reacting to external shocks.

“More stimulus, primarily directed at infrastructure development in China, will be favourable for Malaysia’s exports hence the ringgit,” he added.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the ringgit performed well today, reaching as low as RM4.409 before hovering around RM4.413.

“The US dollar Index fell to 102.016 from yesterday’s closing of 102.204 points. It seems that the market has become anxious about the US CPI with the core CPI expected to come in at 0.4% month-on-month in March from 0.5%previously,” he said.

Meanwhile, the ringgit traded higher against a basket of major currencies.

It improved vis-a-vis the euro to 4.8159/4.8219 from 4.8196/4.8251 at Tuesday’s close, was better versus the British pound to 5.4716/5.4784 from 5.4939/5.5002 and appreciated against the Japanese yen to 3.2943/3.2987 compared with 3.3173/3.3216 yesterday.

Against Asean currencies, the local note was also higher.

It strengthened against the Philippine peso at 7.98/7.99 from 8.04/8.06 at Tuesday’s close and gained versus the Singapore dollar at 3.3104/3.3150 from 3.3156/3.3196 yesterday.

It was also higher compared with the Indonesian rupiah at 296.0/296.6 from 296.6/297.10 on Tuesday and went up against the Thai baht to 12.8657/12.8874 from 12.8998/12.9193 previously. - FMT