Tuesday, May 28, 2024

Ringgit closes higher ahead of key US inflation data

 

KUALA LUMPUR: The ringgit closed higher against the US dollar today as investors remained wary of the global economic outlook ahead of the release of key US inflation data later in the week, said an analyst.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit held steady today while the US Dollar Index (DXY) fell 0.09% to 104.505 points.

He said market players’ focus has shifted towards the Federal Reserve’s (Fed) preferred inflation gauge, the core personal consumption expenditure price index data due Friday.

“Hence it explains the cautious stance among market participants as Fed officials have been adamant in maintaining their stance to keep interest rate steady to bring down inflation towards the 2% target zone,” he told Bernama.

At 6pm, the ringgit rose to 4.6890/4.6910 versus the greenback compared to yesterday’s close of 4.6940/4.6990.

At the close, the ringgit traded mostly higher against a basket of major currencies.

The local unit appreciated against the Japanese yen to 2.9876/2.9890 from yesterday’s close of 2.9919/2.9953 and edged up vis-a-vis the euro to 5.1002/5.1024 from 5.1005/5.1059 previously.

However, it eased versus the British pound to 5.9897/5.9923 from 5.9881/5.9945 yesterday.

The ringgit also performed better against most of its Asean peers.

The local currency strengthened against the Singapore dollar to 3.4785/3.4802 from 3.4799/3.4838 at yesterday’s close, firmed vis-a-vis the Thai baht to 12.7975/12.8089 from 12.8132/12.8321 yesterday and rose versus the Indonesian rupiah to 291.3/291.6 from 292.0/292.5.

However, it slipped against the Philippine peso to 8.09/8.10 from 8.08/8.09 yesterday. - FMT

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