Ringgit opens higher amid caution over inflation


KUALA LUMPUR: The ringgit opened higher against the US dollar today with investors trading cautiously ahead of the consumer price index (CPI) data scheduled to be released on Friday, which may give hints on the rate of inflation in the country.

At 9.03 am, the local note stood at 4.1540/1560 versus the greenback from 4.1690/1700 at Monday’s close.

The market was closed on Tuesday for the Maulidur Rasul celebrations.

An analyst said if the reading comes in higher than expected, it could strengthen the local note a little.

Some are expecting the country’s CPI to increase by 2.2 per cent compared with two per cent in August.

The CPI is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.

As for the performance of the ringgit for the rest of the year, analysts are projecting that it may not be rosy with the tapering of the US Federal Reserve bond-buying programme or quantitative easing which may see outflow of foreign funds by investors.

The Fed is expected to begin its gradual tapering process as soon as mid-November, according to minutes from the central bank’s September meeting.

At home, against a basket of emerging currencies, the local note was traded mixed.

It inched up against the Singapore dollar to 3.0871/0888 from 3.0875/0884 and appreciated versus the yen to 3.6241/6259 from 3.6449/6461.

However, the local note slipped vis-a-vis the British pound to 5.7292/7320 from 5.7245/7258 and weakened to 4.8323/8347 from 4.8285/8297 compared with the euro. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Business News

Study suggests Pfizer COVID-19 vaccine may only partially protect against Omicron
Oil CEOs raise alarm over market's readiness to drop fossil fuels
Oil rises 3%, extending rally as Omicron fears retreat
Omicron sets back airline industry's recovery hopes
GLOBAL MARKETS-Bulls take charge as Omicron concerns ease
Decision on 5G model next month
Citi picks Standard Charterd bank in Malaysia as front runner for Asia retail sales
Yinson raises RM1bil through Malaysia's first sustainability-linked sukuk wakalah programme
3,088 contracts traded during Bursa Malaysia derivatives' first night trading session
ATA remains committed to ensure well-being of workforce

Others Also Read


Vouchers