Ringgit opens almost flat as greenback retreats on inflation fears


KUALA LUMPUR: The ringgit opened marginally higher against the US dollar on Wednesday as the greenback retreated amid growing inflationary pressure, an analyst said.

At 9 am, the local note rose to 4.5050/5100 against the US dollar from yesterday’s close of 4.5060/5130.

SPI Asset Management managing director Stephen Innes said investors will be tuning in to the United States (US) Federal Reserve (Fed) chair Jerome Powell's speech later today, as it will provide an indication of the Fed’s thoughts on the recent Financial Condition Index easing.

"The risk is not in rate hike quantum, as the Federal Open Market Committee has already confirmed a slower pace of hikes, but it is where the market moves from inflation to growth frustration," he told Bernama.

Meanwhile, ActivTrades trader Dyogenes Rodrigues Diniz said the recent US dollar’s bullish push came after the release of the US Conference Board (CB) Consumer Confidence data, which came in higher than expected.

"The US dollar’s appreciation due to higher consumer spending tends to cause inflationary pressure, which may push the Fed to raise interest rates to contain a price rise," he said.

Meanwhile, the ringgit was also traded higher against a basket of major currencies.

The local note climbed versus the Singapore dollar to 3.2780/2821 from 3.2804/2860 at yesterday’s close and advanced against the Japanese yen to 3.2497/2537 from 3.2614/2677 previously.

It had also appreciated versus the British pound to 5.3943/4003 from 5.4004/4088 on Tuesday and strengthened vis-a-vis the euro to 4.6591/6642 from 4.6705/6777 yesterday. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Ringgit , Opening , US dollar , Stephen Innes , Fed , ActivTrades

   

Next In Business News

SC wins insider trading civil suit involving GW Plastics shares
Paper packaging firm Ornapaper to diversify into property development
Econframe expects favourable outlook for M’sia’s industrial property market
SC, USM collaborate to cultivate fintech talents
Ringgit gains some ground against US dollar on DXY decline
RHB Asset Management launches Malaysia's first RHB Global Equity Premium Income Fund
Sapura Energy to divest stake in SapuraOMV to TotalEnergies for RM3.37bil
Sunview and Vision Ambassadors form JV for renewable energy development
Southeast Asia has potential to attract more venture capitalists - KWAP
Axis REIT to acquire two properties in Klang for RM351.8mil

Others Also Read