Ringgit firmer against US dollar ahead of US CPI data
KUALA LUMPUR: The ringgit closed marginally higher against the US dollar on Thursday despite elevated crude oil prices and expectations of a possible US interest rate hike, as investors looked ahead to the release of US consumer price index (CPI) data on Friday.
KUALA LUMPUR: The Malaysian ringgit ended slightly higher against the US dollar on Thursday, despite soaring oil prices and speculation of an imminent US interest rate increase. As investors awaited the US Consumer Price Index (CPI) figures to be released on Friday, the local currency rose to 4.0630/0670 from Wednesday's close of 4.0670/0720.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that Brent crude oil was hovering around US$101 per barrel, a factor that could support the case for a rate hike at the upcoming Federal Open Market Committee meeting. However, the ringgit's performance remains uncertain in the short term. Mohd Afzanizam emphasized the importance of the US inflation reading, due on Friday, which would provide crucial clues about the Federal Reserve's policy direction, potentially shaping the ringgit's near-term trajectory.
At the close, the ringgit demonstrated gains against most major currencies, including the euro, Japanese yen, British pound, and Asean currencies such as the Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.
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