Ringgit starts stronger as inflation stays in check, tipped to stay within 4.06-4.08 range today

KUALA LUMPUR, Aug 18 — The Malaysian ringgit began the day on a bullish note against major currencies, but showed minimal movement against the US dollar, as per economist expectations. By 8 am, the ringgit was trading at 4.0585/0675 against the greenback, up from Monday’s closing rate of 4.0585/0630. Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam, stated that if the probability of a US interest rate increase in September continues to decline, it would bolster emerging market currencies like the ringgit.

He emphasized that Malaysia is currently in a favorable position, as both GDP growth and inflation rates remain robust. Recent consumer price index (CPI) data indicated that headline and core inflation both decreased to 1.8 per cent in July. Consequently, Afzanizam anticipates the ringgit to fluctuate between 4.06 and 4.08 against the US dollar today.

The local currency exhibited strength against various currencies, including the Japanese yen, British pound, euro, Singapore dollar, Thai baht, Philippine peso, and Indonesian rupiah.