6 days ago
Ringgit extends gains ahead of US CPI data release
KUALA LUMPUR: The ringgit maintained its upward momentum against the US dollar and other major currencies, as traders and investors awaited the release of the US Consumer Price Index (CPI) tonight.
At 6 pm, the local note strengthened to 4.2290/2320, an increase of 0.08 per cent against the greenback from Monday's close of 4.2320/2360.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said higher-than-expected July readings could prompt the US Federal Reserve to reconsider cutting the Federal Funds Rate at its Federal Open Market Committee meeting in September.
He said the final estimate for Malaysia's second-quarter (2Q) gross domestic product (GDP) would also be closely monitored.
The Industrial Production Index as well as Index of Services and Construction Work Done for 2Q indicate that the final GDP figure could come in lower than the official advance estimate of 4.5 per cent.
"Our estimates showed that GDP in 2Q could settle at 4.3 per cent. As such, the growth trajectory will determine the degree of monetary accommodativeness in light of the weaker economic outlook globally,' he told Bernama.
At the close, the ringgit ended firmer against major currencies.
It edged up versus the Japanese yen to 2.8490/8512 from Monday's close of 2.8657/8686, improved against the euro to 4.9090/9125 from 4.9269/9316 yesterday and increased vis-a-vis the British pound to 5.6905/6946 from 5.6933/6987.
The ringgit also traded higher against regional peers.
It advanced against the Singapore dollar to 3.2867/2893 from 3.2936/2973 at yesterday's close and strengthened versus the Thai baht to 13.0135/0300 from 13.0569/0769.
The local note also appreciated versus the Indonesian rupiah to 259.6/259.9 from 259.9/260.3 previously and rose vis-a-vis the Philippine peso to 7.41/7.42 from 7.42/7.43. - Bernama
