Ringgit ends higher against US dollar for third consecutive day

KUALA LUMPUR: The ringgit ended higher against the US dollar for the third day in a row as the risk-on appetite in markets was encouraged by the lower-than-expected US Consumer Price Index (CPI) data, while the recent jump in Malaysia’s industrial production index boosted market optimism.

At 6 pm, the local currency rose to 4.4445/4460 versus the greenback from Wednesday’s close of 4.4545/4570.

A dealer said investors reacted with a dovish tilt after the US CPI data was released and the rates markets are now pricing that for the September meeting, the US Federal Reserve would lean towards a 50-basis point (bps) hike rather than 75 bps.

"Asian markets could see risk-on demand for equities supported by a weaker dollar,” he added.

He noted that investors have shown interest in Bursa Malaysia, which in turn boosted demand for the ringgit.

The equity benchmark index breached and stayed above the 1,500-psychological level and end the day at its intraday high of 1,505.56 compared with yesterday's close of 1,492.33.

Meanwhile, the ringgit closed lower against a basket of major currencies.

It slipped against the Singapore dollar to 3.2456/2469 from 3.2333/2356 and eased versus the British pound to 5.4307/4326 from 5.3828/3858 previously.

The local currency fell vis-a-vis the Japanese yen to 3.3516/3529 from 3.3004/3025 on Wednesday and depreciated against the euro at 4.5934/5949 from 4.5547/5573 at yesterday’s closing. - Bernama

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Ringgit , closing , US inflation , CPI , US dollar , IPI


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