KUALA LUMPUR: The ringgit ended higher today against the US dollar for the third consecutive day ahead of the US producer price index (PPI) data release later tonight.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid noted that since the conclusion of the US Federal Open Market Committee (FOMC) meeting on May 1, the ringgit has staged a commendable performance as the odds for another US rate hike look dim.
“Further, weaknesses in the US labour market recently led to renewed hopes for a rate cut to occur, lending further support to other emerging market currencies, including the ringgit.
“However, the situation is still fluid as US Federal Reserve (Fed) officials are still concerned about the trajectory of the disinflationary trend (toward) the 2% target,” he told Bernama.
Besides the PPI data, he said the market is also eyeing tomorrow’s US consumer price index report.
At 6pm, the ringgit rose to 4.7160/4.7190 versus the greenback from yesterday’s close of 4.7270/4.7320.
The ringgit traded higher at the close against a basket of major currencies.
It appreciated versus the Japanese yen to 3.0161/3.0182 from yesterday’s close of 3.0325/3.0359, improved vis-a-vis the British pound to 5.9158/5.9195 from 5.9215/5.9278 and gained against the euro to 5.0900/5.0932 from 5.0967/5.1020 previously.
The local currency also traded mostly higher against Asean currencies.
It gained against the Singapore dollar to 3.4848/3.4873 from 3.4919/3.4959 at yesterday’s close, inched up vis-a-vis the Indonesian rupiah to 292.7/293.3 from 293.9/294.4 and was firmer against the Philippine peso at 8.15/8.16 from 8.17/8.18 previously.
However, it slid against the Thai baht to 12.8596/12.8730 from 12.8388/12.8583 previously. - FMT
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