Ringgit opens almost flat amid cautious sentiment
The local note stood at 4.0705/4.0770 as investors assessed US inflation data and its impact on the interest rate outlook.
KUALA LUMPUR: The Malaysian ringgit opened virtually unchanged against the US dollar on Thursday, as traders analyzed the latest US inflation figures and their ramifications for interest rates. At 8 am, the local currency was trading at 4.0705-4.0770 per US dollar, a slight shift from Wednesday's close of 4.0710-4.0745. Bank Muamalat Malaysia chief economist Afzanizam Rashid attributed the US dollar's strength to hawkish remarks from Federal Reserve officials.
The US Dollar Index surged 0.67% to 102.911 points following the release of October's Consumer Price Index, which exceeded market expectations. However, it remains uncertain whether these concerns will endure, especially as Brent crude oil prices remain below $100 per barrel. For now, the Fed's hawkish tone appears to be the primary driver behind the strong US dollar.
Analysts anticipate the US dollar-ringgit pair to fluctuate within the RM4.07 to RM4.08 range throughout the day. The ringgit demonstrated strength against a range of major currencies, gaining against the euro, British pound, Japanese yen, Thai baht, Singapore dollar, and Indonesian rupiah. Against its ASEAN counterparts, the ringgit showed gains against the Thai baht, Singapore dollar, and Indonesian rupiah, while remaining stable against the Philippine peso.
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