KUALA LUMPUR: The ringgit ended easier against the US dollar on Wednesday, as market sentiment remained cautious amid an evolving outlook in West Asia, said an economist.
At 6 pm, the local currency eased to 4.0670/0720 against the greenback from Tuesday’s close of 4.0605/0640.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Brent crude prices hit the psychological level of US$100 a barrel today as the conflict between US-Israel and Iran continues, leading to uncertainties over crude oil supplies from the Gulf region.
"All this suggests a risk of an elevated inflation rate induced by the higher energy prices, which would result in a tighter monetary policy stance by the United States Federal Reserve and Bank of Japan next week.
"Against this backdrop, the US consumer price index (CPI) print, which will be released on Friday, will be the key data point to watch,” he told Bernama.
Mohd Afzanizam said consensus estimates are pencilling in headline inflation at 3.4 per cent for August (July: 3.4 per cent), while core CPI is expected to come in at 2.4 per cent, slightly lower than 2.5 per cent in July.
At the close, the ringgit was lower against a basket of major currencies.
It slipped against the euro to 4.7275/7333 from Tuesday’s 4.7151/7191, weakened against the British pound to 5.5043/5110 from 5.4926/4974, and declined against the Japanese yen to 2.6474/6509 from 2.6374/6398.
The ringgit also traded lower against the Philippine peso to 6.50/6.52 from 6.48/6.49 on Tuesday and lost against the Singapore dollar to 3.2150/2192 from 3.2073/2104.
It fell against the Thai baht to 12.3579/3788 from 12.3285/3447 and weakened against the Indonesian rupiah to 232.2/232.6 from 230.3/230.5 at the previous close. - Bernama
