Ringgit rebounds to end firmer against US dollar

KUALA LUMPUR: The ringgit rebounded to end higher against the US dollar today as the greenback weakened ahead of the United States (US) inflation data due this week which would provide guidance on the global interest rate outlook, said an analyst.

At 6 pm, the ringgit rose to 4.6940/6990 versus the greenback from Friday’s close of 4.7100/7130.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the local currency was on firm footing today in tandem with the regional currencies' performance against the US dollar.

He noted that last week's report showed that the US Consumer Sentiment Index (CSI) fell to 69.1 points in May 2024 from 77.2 points in the prior month, while the indexes for the Current Economic Condition and Consumer Expectations also declined to 69.6 (April: 79.0) and 68.8 (April: 76.0) respectively.

"This suggests that US consumers have become increasingly wary about the state of the economy.

"While this can help build the case for a rate cut, the persistent concern among the Federal Reserve members on inflation would result in market participants being cautious on the interest rate outlook,” he told Bernama.

Meanwhile at the close, the ringgit was traded mostly lower against a basket of major currencies.

The local unit appreciated versus the Japanese yen to 2.9919/9953 from Friday’s 2.9996/3.0017, but fell against the euro to 5.1005/1059 from 5.1000/1032 and slid vis-a-vis the British pound to 5.9881/9945 from 5.9859/9898 previously.

However, the local note traded higher against its ASEAN peers.

The local note strengthened against the Singapore dollar to 3.4799/4838 from 3.4876/4901 at Friday’s close and firmed versus the Thai baht to 12.8132/8321 from 12.8373/8507.

The ringgit rose against the Indonesian rupiah to 292.0/292.5 from 294.5/294.7 last week and inched higher versus the Philippine peso at 8.08/8.09 from 8.09/8.10. - Bernama