KUALA LUMPUR: The ringgit opened higher against major currencies but eased against the US dollar on Thursday, amid a moderation in the highly anticipated US consumer price index (CPI).
At 8 am, the local currency eased to 4.0850/0950 against the greenback from yesterday’s close of 4.0835/0875.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that US CPI inflation has moderated slightly to 3.4 per cent in July from 3.5 per cent a month ago.
"The outturn was in line with consensus estimates. The 10-year US Treasury yields fell below 4.70 per cent, suggesting the inflation premium is moderating, while the two-year note yielded one basis point lower to 4.20 per cent, implying the Fed may not be in a hurry to raise the interest rate,” he told Bernama.
He also said worries over the reopening of the Straits of Hormuz remain elusive, and this could mean the risk of higher inflation is fairly visible.
"As such, the ringgit could still perform favourably today. We expect the ringgit to oscillate around RM4.07 to RM4.09 against the US dollar today,” he said.
At the opening, the local currency was higher against a basket of major currencies.
It climbed against the Japanese yen to 2.5637/5701 from 2.5655/5682 at Wednesday’s close and rose against the euro to 4.7092/7207 from 4.7107/7153. The ringgit improved vis-à-vis the British pound to 5.5135/5270 from 5.5180/5234 previously.
The local note was mixed against regional currencies.
It climbed against the Thai baht to 12.3418/3791 from 12.3488/3665 on Wednesday, but eased against the Singapore dollar to 3.1912/1992 from 3.1905/1941.
The local note was traded with little change versus the Indonesian rupiah at 228.5/229.1 from 228.4/228.7 and was flat vis-à-vis the Philippine peso at 6.67/6.69 previously. - Bernama
