kuala lumpur: The ringgit started weaker against the US dollar early today as the US dollar strengthened following the release of the United States (US) Producer Price Index (PPI).
As of 9:00 am, local notes fell against the US dollar to 4.4735/4790 from Thursday’s close of 4.4615/4665.
ActivTrades trader Diogenes Rodriguez said PPI is used as a way to measure consumer inflation at the end, as it measures inflation at the start of the production chain and is measured by the Consumer Price Index (CPI). Stated.
“Today’s figures show inflation at +0.2% in April, and overall inflation could rise in the coming months.
“Rising inflation has investors expecting the Fed to need to raise interest rates in the near future to keep prices down, which tends to push the U.S. dollar higher,” he told Barnama. It’s in,’ he said.
Meanwhile, Mohud Afzanizam Abdul Rashid, chief economist and social finance officer at Bank Muammarat Malaysia, said the US PPI in April hit 2.3%, following a 2.7% rise in March, while the core PPI was down from the previous quarter. said it remained at 3.4% to 3.2%. .
“The CPI shows a similar trend, suggesting that a disinflationary trend is prevalent.
“Risk-off mode is evident, and therefore, the US dollar-ringgit (USD/MYR) pair is likely to remain above the RM4.46 level as demand for the US dollar remains strong. ‘ said.
He added that today’s Malaysian gross domestic product (GDP) release for the first quarter of 2023 will also be watched as a clue for the direction of the market.
“We expect 5.5% growth, driven mainly by domestic demand,” he said.
Meanwhile, the ringgit traded mostly lower against a basket of major currencies.
It fell against the euro to 4.8851/8911 from Thursday’s close of 4.8751/8805 and against the Japanese yen to 3.3250/3294 from yesterday’s 3.3122/3161, but rose to 5.5990/6059 against the British pound. Compare with previous 5.6161/6224.
At the same time, local banknotes traded mixedly against ASEAN currencies.
The Thai baht rose to 13.2176/2413 from Thursday’s close of 13.2283/2482, while the Indonesian rupiah fell to 303.8/304.4 from yesterday’s 302.9/303.5 and fell to 3.3608/3651 against the Singapore dollar compared to 3.3588/3651. . Previously 3628.
Local banknotes were flat against the Philippine peso at 8.00/8.02 from Thursday’s 8.00/8.01. –bernama