kuala lumpur: The ringgit retreated against the US dollar in today’s early session ahead of the US inflation report due out Wednesday.
At 9:27 am, the local currency eased to 4.4370/4395 against the US dollar from Monday’s close of 4.4360/4380.
Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid said investors are at a crossroads and will make the right decision based on future data points.
“On that note, USD/RM should be flat at the RM4.43 level, which is very close to the current support level of RM4.4254.
“For USD/Ringgit to break through support levels, the US Federal Reserve may want to change its monetary stance, which appears to be dictated by Wednesday’s April inflation report, further said. We need proof,” he told Bernama.
As for Malaysia, today’s data point will be the Industrial Production Index (IPI) for March 2023.
“We expect 2.7% growth, which is slower than 3.6% growth, as output in export-oriented industries may not be as promising,” said Mohd Afzanizam.
Meanwhile, the ringgit traded higher against a basket of major currencies.
It rose against the British Pound on Monday at 5.5964/5995 vs 5.6084/6110, against the Euro from 4.8960/8982 to 4.8772/8799 and against the Japanese Yen from 3.2854/2872 to 3.2833/2854. Last close.
Local currencies traded variably against Asean currencies.
It was 3.3472/3496 against the Singapore dollar compared to Monday’s close of 3.3489/3507 and was flat against the Indonesian rupiah at 301.5/301.8 to 301.5/301.9 yesterday.
The local currency fell against the Thai baht to 13.1420/1545 from 13.1184/1302, but improved further against the Philippine peso to 7.99/8.00 from 8.02/8.03. – Bernama
