Ringgit closes lower ahead of key US inflation data

 

KUALA LUMPUR: The ringgit retreated to end the week marginally lower against the US dollar as the latter held steady ahead of the key US inflation data due to be released later today, an analyst said.

At 6pm, the ringgit eased to 4.7050/4.7080 versus the greenback from yesterday’s close of 4.7020/4.7070.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the local currency remained in a tight range as markets awaited the Federal Reserve’s (Fed) inflation data and personal consumption expenditures (PCE) price index report for April.

“The main issue affecting market sentiment is whether the Fed will cut rates or let them remain as they are,” he told Bernama.

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

The local unit fell against the euro to 5.1035/5.1068 from 5.0838/5.0892 at yesterday’s close and slid versus the British pound to 5.9876/5.9914 from 5.9767/5.9831.

However, it appreciated versus the Japanese yen to 2.9901/2.9922 from yesterday’s close of 2.9959/2.9992.

Similarly, the ringgit was also lower against its Asean peers.

It decreased against the Thai baht to 12.7860/12.7994 from 12.7727/12.7908 at yesterday’s close and dropped against the Singapore dollar to 3.4803/3.4828 from 3.4791/3.4833.

The local unit depreciated vis-a-vis the Indonesian rupiah to 289.4/289.7 from 289.0/289.4 yesterday and weakened versus the Philippine peso to 8.03/8.05 from 8.02/8.03 previously. - FMT