KUALA LUMPUR: The ringgit opened little changed against the US dollar on Thursday as investors assessed the latest US inflation data and its implications for the interest rate outlook.
At 8 am, the local currency stood at 4.0705/0770 against the greenback, compared with 4.0710/0745 at Wednesday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that hawkish signals from US Federal Reserve (Fed) officials appeared to be the main factor underpinning the greenback.
He said the US Dollar Index rose 0.67 per cent to 102.911 points following the release of October’s Consumer Price Index, which came in above market expectations.
“It remains to be seen whether such concerns will persist, particularly as Brent crude oil prices are hovering below US$100 per barrel.
“For now, the Fed’s hawkish stance has been the main factor underpinning the strong US dollar. We expect the US dollar-ringgit pair to trade within the RM4.07 to RM4.08 range today,” he said.
The ringgit strengthened against a basket of major currencies.
It appreciated against the euro to 4.5158/5230 from 4.5343/5382 at Wednesday’s close, strengthened against the British pound to 5.4036/4122 from 5.4246/4293, and rose against the Japanese yen to 2.5479/5521 from 2.5609/5632.
Against its ASEAN peers, the ringgit traded mostly higher.
It strengthened against the Thai baht to 12.0497/0764 from 12.0963/1117 and the Singapore dollar to 3.1689/1742 from 3.1745/1775.
Against the Indonesian rupiah, the ringgit edged higher to 224.2/224.7 from 224.3/224.6 previously.
Meanwhile, the local currency was little changed against the Philippine peso at 6.43/6.45 compared with 6.43/6.44 at Wednesday’s close.
