Ringgit strengthens against US dollar amid weak US housing data

KUALA LUMPUR: The ringgit closed higher against the US dollar today driven by weak United States (US) housing data released in a joint report by the US Department of Housing and Urban Development and US Census Bureau yesterday.

At 6 pm, the ringgit rose to 4.6690/6725 against the greenback from Monday’s close of 4.6785/6830.

SPI Asset Management managing partner Stephen Innes said the housing data has reinforced the anticipation of US Federal Reserve (Fed) rate cuts in the second quarter 2024.

"These expectations of rate cuts have been exerting downward pressure on US yields and appear to be favourable for the ringgit.

"However, I anticipate that any additional gains may be constrained leading up to the release of US personal consumption expenditures (PCE) inflation data later this week,” he told Bernama.

Nevertheless, he said that if the US inflation data turns out to be lower than expected, it could potentially lead to a strengthening of the ringgit, pushing it below the 4.65 level.

At the close, the ringgit was traded mostly lower versus a basket of major currencies.

It appreciated vis-a-vis the euro at 5.1140/1178 from 5.1220/1269 on Mondays closed but fell against the Japanese yen to 3.1430/1456 from 3.1334/1366 and went down against the British pound to 5.8965/9009 from 5.8963/9020.

The local note was traded mixed against other Asean currencies.

It was marginally higher versus the Singapore dollar to 3.4948/4976 from 3.4961/5000 and appreciated versus the Philippines’ peso to 8.42/8.43 from 8.43/8.45, previously.

Meanwhile, it depreciated against the Thai baht at 13.3629/3791 from 13.3181/3381 and was lower against the Indonesian rupiah at 302.4/302.8 from 301.9/302.3 at yesterday’s close. - Bernama

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ringgit , US dollar , Stephen Innes , US , Housing Data


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