Ringgit firmer against US dollar ahead of CPI data

 Investors are awaiting the release of US consumer price index data on Friday, says analyst.

KUALA LUMPUR:

The ringgit closed marginally higher against the greenback today despite elevated crude oil prices and expectations of a possible interest rate hike, as investors looked ahead to the release of the US consumer price index (CPI) data on Friday.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said Brent crude was hovering around US$101 (RM410.63) per barrel, a development that could bolster the case for a rate hike at next week’s Federal Open Market Committee meeting.

“Despite that, the ringgit performed favourably against the US dollar. Still, it remains to be seen whether the appreciation can be sustained in the near term,” he told Bernama.

Afzanizam said the US inflation reading, due on Friday, would be closely watched for indications on the Federal Reserve’s policy path, which could influence the ringgit’s near-term direction.

At 6pm, the local currency appreciated to 4.0630/4.0670 against the greenback from yesterday’s close of 4.0670/4.0720.

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

It strengthened slightly against the euro to 4.7269/4.7315 from yesterday’s 4.7275/4.7333 and appreciated against the Japanese yen to 2.6431/2.6459 from 2.6474/2.6509.

Against the British pound, it was little changed at 5.5046/5.5100 from 5.5043/5.5110 previously.

The ringgit also traded higher against Asean currencies.

It strengthened against the Singapore dollar to 3.2113/3.2148 from 3.2150/3.2192, appreciated against the Thai baht to 12.3331/12.3497 from 12.3579/12.3788, rose against the Indonesian rupiah to 231.5/231.8 from 232.2/232.6, and improved against the Philippine peso to 6.49/6.50 from 6.50/6.52 at yesterday’s close. - FMT