Ringgit opens flat vs US dollar, but stronger vs other currencies

KUALA LUMPUR: The ringgit opened almost flat against the US dollar today, ahead of the United States Consumer Price Index (CPI) data for July set to be released today.

At 9.05 am, the local note stood at 4.5710/5760 against the greenback compared with 4.5705/5755 at Wednesday’s close.

ActivTrades trader Dyogenes Rodrigues Diniz told Bernama that the US dollar currently seeing a decline, noting that the downward movement will be confirmed if it breaks below the 4.5550 region over the next few days.

“From the macroeconomic point of view, investors are likely to be waiting for the release of US inflation data for further direction

“If the CPI reading comes in lower than expected, it could accentuate the downward movement in USD/MYR,” he said, adding that the USD/MYR could drop to as low as the 4.5050 region.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said China’s economic situation is currently in the spotlight, as data indicates that the country is facing challenges in achieving substantial growth in 2023.

“This underscores the necessity for China to increase its stimulus measures to prevent further deterioration in the future.

“The July report of a negative CPI of 0.3 per cent suggests that the primary approach of relying on monetary policy must take more substantial action to facilitate additional monetary easing.

“Consequently, it is anticipated that the ringgit might remain within RM4.57-RM4.58 throughout the day,” he told Bernama.

Meanwhile, the ringgit was traded higher against a basket of major currencies.

It appreciated against the Japanese yen to 3.1798/1837 from 3.1897/1934 on Wednesday’s close, rose against the euro to 5.0144/0199 from 5.0175/0230 yesterday and went up vis-a-vis the British pound to 5.8102/8166 from 5.8187/8251 previously.

At the same time, the local unit was also traded higher against other Asean currencies.

The ringgit went up versus the Singapore dollar to 3.3940/3979 from Wednesday’s close of 3.3979/4021, appreciated against the Philippines’ peso to 8.10/8.12 from 8.13/8.14 yesterday, and strengthened against the Thai baht to 13.0332/0523 from 13.0791/0998 previously.

It was unchanged against the Indonesian rupiah at 300.9/301.3. – Bernama