kuala lumpur: The ringgit strengthened against the US dollar in early trade on Thursday, although its appeal as a safe-haven currency remained strong amid the risk-averse mood in the market.
As of 8:11 a.m., the ringgit had risen to 4.4250/4355 ringgit against the US dollar, compared to the previous day’s closing price of 4.4300/4355 ringgit.
Bank Negara Malaysia Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US dollar will continue to weaken as the US Dollar Index (DXY) remains high after the US Consumer Price Index (CPI) was mostly in line with expectations. He said it had risen further.
He said the US CPI was 2.7% in November, up from 2.6% the previous month. Meanwhile, core CPI remained at 3.3% for the third consecutive month, up from 3.2% in August, suggesting that inflation remains at a sticky level.
“The US Federal Reserve appears likely to remain hawkish in 2025. Its current monetary policy stance will remain restrictive and will likely continue to cut interest rates.
“However, policy rates will be prudently eased as the upside risks to inflation are clear with the Trump 2.0 policy on tariffs. We therefore expect the ringgit to remain range bound today,” he said in a statement from Bernama. I told Mr.
The ringgit has nearly depreciated against other major currencies.
Against the British pound, it fell to 5.6498/6632 from 5.6389/6459, and against the Japanese yen it fell from 2.9013/9051 to 2.9083/9154, but against the euro it rose to 4.6493/6604 from Wednesday’s closing price of 4.6515/6573.
However, local currencies traded mixed against ASEAN currencies.
On Wednesday, the dollar fell against the Singapore dollar from 3.2937/2980 to 3.2951/3032, and against the Thai baht it fell from 13.0640/0875 to 13.0817/1224.
The ringgit was unchanged against the Philippine peso at 7.59/7.61, but against the Indonesian rupiah it was 277.9/278.7, a slight increase from the previous rate of 278.2/278.7.
