Ringgit could stabilise at 4.71 against greenback

 

KUALA LUMPUR: The ringgit traded higher against most major currencies except the US dollar in the early session today as the greenback strengthened amid the higher-than-expected US inflation data, said an analyst.

It was reported that the US consumer price index (CPI) increased 0.4% in September and 3.7% from a year ago, which were above respective forecasts of 0.3% and 3.6%.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the higher-than-expected US CPI along with sustained jobless claims insurance of 209,000 last week has boosted the US dollar.

The US Dollar Index (DXY) is up by 0.74% to 106.599 points, he added.

“As such, the US dollar/ringgit exchange could stabilise at the prevailing level of around 4.71 after experiencing some form of appreciation this week when the exchange rate reached a high of 4.7315,” he told Bernama.

On the local front, Afzanizam said investors are eagerly waiting for Budget 2024 tabling later today.

He said the key policy that will be closely scrutinised is the subsidy reform, new taxes and the fiscal deficits target.

“The Federal government looks on track to achieve its fiscal target of 5% of gross domestic product in 2023; the first half of 2023 already reached 4.5%.

“The Mid-Term Review of the 12th Malaysia Plan also spelled out that the target for 2025 is around 3% to 3.5%. Perhaps we should be looking at a lower trajectory in 2024,” he said.

At 9am, the local note fell to 4.7280/4.7330 against the greenback from Thursday’s close at 4.7090/4.7140.

The ringgit was traded mostly higher versus a basket of major currencies.

It appreciated against the euro to 4.9828/4.9881 from 5.0005/5.0058, went up against the British pound to 5.7620/5.7681 from 5.7925/5.7987 and was flat against the yen at 3.1571/3.1606.

The local note was traded mixed against other Asean currencies.

It rose against the Thai baht to 12.9744/12.9920 from 12.9997/13.0207 at yesterday’s close and was flat against the Singapore dollar at 3.4556/3.4598.

It depreciated against the Indonesian rupiah at 301.1/301.6 from 299.9/300.4 at Thursday’s close and inched down versus the Philippine peso to 8.32/8.34 from 8.31/8.32 previously. - FMT