Ringgit Eases Against Greenback Ahead Of US Inflation Reports
By Danni Haizal Danial Donald
KUALA LUMPUR, Sept 10 (Bernama) -- The ringgit eased against the American dollar at the close on Wednesday as cautious investors took profit after recent gains, ahead of US inflation reports this week.
US producer price inflation data is due later today, followed by the consumer price index report on Thursday.
At 6 pm, the local note fell to 4.2185/2220 from Tuesday’s close of 4.2025/2080.
Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam Abdul Rashid, said traders were wary of the upcoming US inflation reports, despite the weaker American job market.
“Consensus estimates are expecting the headline Producer Price Index (PPI) to remain at 3.3 per cent in August, while core PPI would moderate to 3.5 per cent from 3.7. Our general sense is that the traders are wary of the figure turning out to be higher than expected and that could sway the US Federal Reserve’s (Fed) decision next week,” he told Bernama.
SPI Asset Management managing director Stephen Innes said the recent US nonfarm payrolls revision showed job growth had slowed, but the greenback drew support from safe-haven demand after the Israeli strike against Hamas in Qatar. “Traders are squaring up positions ahead of the US Consumer Price Index (CPI) release, which could lift US yields if inflation comes in hot,” he added.
At the close, the ringgit was mostly higher against a basket of major currencies.
It gained against the euro to 4.9416/9457 from 4.9451/9516, climbed up versus the yen to 2.8614/8639 from 2.8711/8751, but went down vis-à-vis the pound to 5.7127/7174 from 5.7095/7170 yesterday.
However, the local note was mostly lower against ASEAN currencies.
It edged down against the peso to 7.38/7.39 from 7.37/7.39 previously and slipped versus the Singapore dollar to 3.2883/2912 from 3.2824/2870. The ringgit inched down against the baht to 13.2699/2872 from 13.2688/2925, and eased vis-à-vis the rupiah to 256.1/256.4 from 254.9/255.4.
-- BERNAMA