KUALA LUMPUR – The ringgit closed higher against the US dollar today as investors remained wary of the global economic outlook ahead of key United States inflation data to be released later in the week, an analyst said.
At 6pm, the ringgit rose to 4.6890/6910 versus the greenback compared to yesterday’s close of 4.6940/6990.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit held steady today while the US dollar index fell 0.09% to 104.505 points.
He said market players’ focus has shifted towards the Federal Reserve’s (Fed) preferred inflation gauge – the core personal consumption expenditure price index data due Friday.
“Hence, it explains the cautious stance among market participants, as Fed officials have been adamant in maintaining their stance to keep interest rates steady to bring down inflation towards the 2% target zone,” he said.
At the close, the ringgit traded mostly higher against a basket of major currencies.
The local unit appreciated against the Japanese yen to 2.9876/9890 from yesterday’s close of 2.9919/9953 and edged up vis-a-vis the euro to 5.1002/1024 from 5.1005/1059 previously.
However, it eased versus the British pound to 5.9897/9923 from 5.9881/9945 yesterday.
The ringgit also performed better against most of its Asean peers.
The local currency strengthened against the Singapore dollar to 3.4785/4802 from 3.4799/4838 at yesterday’s close, firmed vis-a-vis the Thai baht to 12.7975/8089 from 12.8132/8321 yesterday and rose versus the Indonesian rupiah to 291.3/291.6 from 292.0/292.5.
However, it slipped against the Philippine peso to 8.09/8.10 from 8.08/8.09 yesterday. – May 28, 2024