KUALA LUMPUR, 12 MAY — The ringgit opened higher against a basket of major currencies, including the US dollar, ahead of the release of key US economic data tonight, which is expected to reinforce expectations that the US Federal Reserve (Fed) will maintain interest rates, said an analyst.
At 8am, the local currency rose to 3.9200/9300 against the US dollar from 3.9220/9260 at the close on Monday.
Bank Muamalat Malaysia Bhd Chief Economist, Mohd Afzanizam Abdul Rashid said the US consumer price index (CPI) for April will be announced tonight with the headline and core CPI expected to jump by 3.7 per cent (March: 3.3 per cent) and 2.7 per cent (March: 2.6 per cent) respectively.
“Therefore, the US Fed is likely to maintain stable interest rates, while interest rate cuts this year are expected to remain low.”
“The ringgit is expected to remain in flat trading mode in the near term as geopolitical risks remain heightened with the high-impact meeting between US President Donald Trump and Chinese President Xi Jinping scheduled to take place this week,” he told Bernama.
At the opening, the ringgit traded mostly higher against major currencies.
The local unit rose against the Japanese yen to 2.4925/4990 from 2.4955/4983 at Monday’s close and gained against the British pound to 5.3312/3448 from 5.3331/3383 yesterday, however it declined against the euro to 4.6162/6280 from 4.6150/6197 previously.
At the same time, the ringgit traded mixed against ASEAN currencies.
The ringgit strengthened against the Singapore dollar to 3.0883/0964 from 3.0887/0921 at yesterday’s close and surged against the Indonesian rupiah to 225.1/225.7 from 225.2/225.5 previously.
However, the local currency was unchanged against the Philippine peso to 6.41/6.43 from 6.41/6.42 at yesterday’s close and depreciated against the Thai baht to 12.1374/1759 from 12.0900/1083 previously.
— BERNAMA
