Ringgit opens flat ahead of CPI data on diesel price insights

 

KUALA LUMPUR: 

The ringgit was flat against the US dollar in the morning session and mixed against a basket of other major currencies ahead of Malaysia’s inflation announcement today, said an analyst.

At 8.02am, the ringgit was flattish at 4.6720/4.6770 against the greenback from Tuesday’s close of 4.6720/4.6745.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said Malaysia’s Consumer Price Index (CPI) would be closely monitored, as the impact of the June 10 diesel price hike would be reflected in the upcoming data series.

He added that the ringgit is also expected to be well supported as the expectation of a US rate cut continues to build.

The two-year US Treasury yield during its auction was at 4.434% compared to the previous auction of 4.706%, suggesting that the bond market is anticipating monetary easing by the US Federal Reserve to occur this year,

 he noted.

Meanwhile, the local note was mostly higher against a basket of major currencies.

The local currency was lower versus the Japanese yen at 2.9978/3.001 from 2.9958/2.9976 at Tuesday’s close, rose against the British pound to 6.0269/6.0333 from 6.0320/6.0352 and improved vis-a-vis the euro to 5.0691/5.0745 from 5.0771/5.0798 yesterday.

The ringgit is also mixed against Asean currencies and almost flat against the Indonesian rupiah and the Philippine peso.

The domestic unit rose slightly against the Singapore dollar to 3.4713/3.4753 from Tuesday’s 3.4731/3.3752 but fell against the Thai baht at 12.9196/12.9392 against 12.9004/12.9116 yesterday.

It was flat against the Indonesian rupiah, at 288.1/288.5 from 288.1/288.4, and against the Philippine peso, at 7.99/8.01 from Tuesday’s 7.99/8.00. - FMT