Ringgit Holds Steady Versus Greenback Ahead Of US CPI Report
By Danni Haizal Danial Donald
KUALA LUMPUR, Sept 11 (Bernama) -- The ringgit held steady against the American dollar and strengthened versus other major currencies at the close on Thursday, as investors awaited the US Consumer Price Index (CPI) report due later tonight.
At 6 pm, the local note was little changed at 4.2185/2240 from Wednesday’s close of 4.2185/2220.
Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam Abdul Rashid, noted that the US Dollar Index (DXY) was up 0.13 per cent to 97.906 points ahead of the US CPI report.
“Consensus estimates pegged the US August CPI at 2.9 per cent from 2.7 per cent (in July) while the core CPI is expected to be sustained at 3.1 per cent. This would be critical data before the US Federal Open Market Committee members reconvene next week on Sept 16 and 17, with the futures market having put a (high) probability of a 25 basis points cut next week,” he told Bernama.
Mohd Afzanizam expects the ringgit to maintain its narrow range trade in the near term.
SPI Asset Management managing director Stephen Innes noted that a stronger-than-expected CPI reading could push yields higher and spark a temporary rebound in the US dollar. “Many had taken short-dollar bets following the US payroll revisions and weaker (producer price index) data last night, only to be caught off guard. The unwinding of those trades is proving just as supportive for the greenback as new buying,” he added.
At the close, the ringgit was higher against a basket of major currencies.
It gained against the euro to 4.9293/9357 from 4.9416/9457, climbed up versus the yen to 2.8509/8548 from 2.8614/8639, and advanced vis-à-vis the pound to 5.6954/7028 from 5.7127/7174 yesterday.
The local note was also mostly higher against ASEAN currencies.
It inched up versus the Singapore dollar to 3.2829/2874 from 3.2883/2912, rose against the baht to 13.2432/2663 from 13.2699/2872, and edged up against the peso to 7.37/7.39 from 7.38/7.39 previously.
However, the ringgit eased marginally vis-à-vis the rupiah to 256.2/256.7 from 256.1/256.4.
-- BERNAMA