Ringgit ends slightly higher on prospect of softer US CPI data

 

KUALA LUMPUR: The ringgit closed slightly higher against the US dollar with market sentiment sanguine over the US inflation data tonight.

At 6pm, the local currency stood at 4.6500/4.6535 against the greenback compared with 4.6570/4.6610 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said investors are anticipating a softer US inflation data from the Consumer Price Index (CPI).

“Tonight is quite crucial. The main worry would be the US inflation rate, whether it would defy market expectation to turn up higher than expected,” he told Bernama.

The consensus view is that US headline and core CPI would record slower increases in June at 3.1% (May: 4%) and 5% (May: 5.3 %), respectively.

He also said that Malaysia’s Industrial Production Index (IPI) had rebounded to 4.7% in May 2023 against a negative 3.3% recorded in the previous month, which suggests that Malaysia could withstand the prospects of slower global growth this year.

At home, the ringgit traded mostly higher against a basket of major currencies at today’s close.

It strengthened vis-a-vis the euro to 5.1262/5.1300 from 5.1264/5.1308 at yesterday’s close, rose against the British pound to 6.0120/6.0165 from 6.0136/6.0187 but slipped against the Japanese yen to 3.3300/3.3327 from 3.3162/3.3193.

The local currency traded mostly lower against other Asean currencies.

The ringgit rose against the Thai baht to 13.3173/13.3338 from Tuesday’s close of 13.3780/13.3956 but was down against the Singapore dollar at 3.4753/3.4782 from 3.4723/3.4755.

The ringgit fell against the Indonesian rupiah to 308.4/308.8 from 307.2/307.7 and eased against the Philippine peso at 8.46/8.47 from 8.42/8.43. - FMT