Investors remained cautious ahead of the release of US inflation data for June amid continued geopolitical tensions in the Middle East, says analyst.
At 6pm, the local currency depreciated to 4.0760/4.0800 against the greenback from yesterday’s close of 4.0680/4.0730.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the US is scheduled to release its June Consumer Price Index (CPI) data later tonight.
He noted that based on consensus estimates, US headline inflation for June is expected to moderate to 3.8% year-on-year from 4.2% in the previous month.
“Similarly, the consensus forecast points to a 2.8% increase in the core CPI, following a 2.9% rise previously. Although the June CPI is expected to moderate, uncertainties surrounding shipping traffic through the Strait of Hormuz could keep crude oil prices elevated, potentially leading to renewed acceleration in inflation,” he told Bernama.
Afzanizam said heightened geopolitical tensions in the Middle East and possible disruptions to vessel traffic through the Strait of Hormuz would keep traders’ risk appetite guarded.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It weakened against the Japanese yen to 2.5131/2.5157 from 2.5110/2.5142 yesterday and declined versus the British pound to 5.4533/5.4586 from 5.4475/5.4542. However, the local note strengthened vis-a-vis the euro to 4.6470/4.6516 from 4.6501/4.6558 previously.
The ringgit traded mixed against regional currencies.
It eased versus the Singapore dollar to 3.1533/3.1567 from 3.1489/3.1530 and depreciated against the Indonesian rupiah to 225.3/225.6 from 224.6/225.0.
The local note strengthened against the Thai baht to 12.1556/12.1722 from 12.1953/12.2151 and was almost flat vis-a-vis the Philippine peso at 6.60/6.61 compared with 6.60/6.62 previously. - FMT
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