Latest news with #USConsumerPriceIndex
The Star
4 days ago
- Business
- The Star
Ringgit closes slightly lower against greenback
SPI Asset Management's Innes said the ringgit is under pressure mainly because of concerns the US Federal Reserve might keep interest rates higher for longer. KUALA LUMPUR: The ringgit slipped 0.01% against the US dollar at the close, as the local note continued trading on the defensive yesterday, which offered some technical comfort for the ringgit. At 6pm, the local note was traded at 4.2400/2490 from 4.2395/2440 at Wednesday's close. SPI Asset Management managing partner Stephen Innes said the ringgit is under pressure mainly because of concerns that the US Federal Reserve (Fed) might keep interest rates higher for longer, as markets reassess the inflation outlook. He added that the US dollar has strengthened recently as investors are becoming less certain that the Fed will cut rates in September. Innes also said that the dollar's recent bid reflected a subtle but growing shift in sentiment, which markets are slowly walking back their conviction that the Fed will cut the interest rate in September. 'Sticky core inflation, fuelled in part by service-sector dynamics and the slow-burn impact of tariffs, is keeping the Fed in a wait-and-see mode. 'The ringgit remains vulnerable to a temporary widening in the US-Malaysia exchange rate spread. 'This does not necessarily break the broader 4.20-4.30 range, and we are still inside expected bands for now, but it does create a bias for further weakness,' he added. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the ringgit weakened against the US dollar in the early morning session to 4.2575 in response to the US Consumer Price Index (CPI), which continued to increase in June to 2.7% from 2.4% previously. 'The latest CPI print appears to give the impression that the Fed may not be inclined to cut the Fed Fund Rate in the upcoming meeting in July. 'In a nutshell, the ringgit maintained its narrow-range trade in light of the ongoing uncertainties over the US tariffs,' Mohd Afzanizam said.
Mint
17-07-2025
- Business
- Mint
Gold price drops on dollar's rise, silver rates rise; experts unveil strategy for precious metals
Gold price today: Gold rates traded lower in Thursday's early trade in the domestic futures market, pressured by weak global cues and an uptick in the US dollar. Silver prices, however, climbed, supported by healthy spot market demand. Around 9:05 AM, MCX Gold August 5 contracts were 0.30 per cent down at ₹ 97490 per 10 grams, while MCX Silver September 5 contract traded 0.10 per cent up at ₹ 1,11,748 per kg. The dollar's gain and easing tariff-related concerns weigh on gold prices. The dollar index climbed 0.20 per cent, making gold expensive in overseas currencies. Meanwhile, US President Donald Trump denied reports that he was planning to dismiss Federal Reserve Chair Jerome Powell, easing market concerns that Powell's removal would dent the credibility of the US financial system and the dollar's appeal as a safe-haven currency. Powell's term ends in May 2026. Trump has been criticising Powell for not lowering interest rates and, according to media reports, was exploring the possibility of removing him. The Fed, on the other hand, is expected to keep rates unchanged until at least September this year, even though the US Producer Price Index (PPI) remained unchanged in June. However, the US Consumer Price Index (CPI) in June surged to its highest level since February. On the tariff front, Trump said on Wednesday, July 16, that America was close to finalising a trade deal with India. According to Carsten Menke, Head Economics and Next Generation Research, Julius Baer, gold is consolidating as it is missing a trigger to restart the recent rally. "As a result of easing trade tensions and receding recession risks, safe-haven demand started to soften. Central bank buying is still sound, but not as strong as earlier in the year. We still see a longer-term favourable fundamental backdrop," Menke noted. Pointing out silver's recent rally, Menke said its catch-up potential to gold seems to be exhausted. "Judging by the strength of the recent rally and the decline of the gold/silver ratio to around 85, silver does not appear particularly cheap anymore in comparison to gold. When the ratio was at 100, we highlighted silver's catch-up potential, but this seems to be very much exhausted as of now. We lift our 3- and 12-month price targets to $37 and $40 per ounce, but nonetheless downgrade our view to neutral," said Menke. Manoj Kumar Jain of Prithvifinmart Commodity Research suggests buying gold and silver on dips. "We suggest buying gold on dips around ₹ 97,300 with a stop loss of ₹ 96,850 for the target of ₹ 98,100 and also suggest buying silver around ₹ 1,10,800 with a stop loss of ₹ 1,09,900 for the target of ₹ 1,12,800," said Jain. "Gold has support at $3,340-3,327, while resistance is at $3,374-3,389 per troy ounce, and silver has support at $37.80-37.40, while resistance is at $38.40-38.70 per troy ounce in today's session. MCX Gold has support at ₹ 97,440-97,100 and resistance at ₹ 98,080-98,400 while silver has support at ₹ 1,10,800-1,10,000 and resistance at ₹ 1,12,400-1,13,100," said Jain. According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,315-3,290 while resistance is at $3,360-3,380. Silver has support at $37.40-37.10 while resistance is at $38.20-38.45. In INR, Kalantri said gold has support at ₹ 97,320-96,980 while resistance is at ₹ 97,980-98,280. Silver has support at ₹ 1,10,280-1,09,450 while resistance at ₹ 1,11,950-1,13,000. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
The Star
16-07-2025
- Business
- The Star
Ringgit closes slightly lower vs US$, stays defensive despite Fed concerns
KUALA LUMPUR: The ringgit slipped 0.01 per cent against the US dollar at the close, as the local note continued trading on the defensive today, which offered some technical comfort for the ringgit. At 6 pm, the local note was traded at 4.2400/2490 from 4.2395/2440 at Wednesday's close. SPI Asset Management managing partner Stephen Innes said the ringgit is under pressure mainly because of concerns that the United States (US) Federal Reserve (Fed) might keep interest rates higher for longer, as markets reassess the inflation outlook. He added that the US dollar has strengthened recently as investors are becoming less certain that the Fed will cut rates in September. Innes also said that the dollar's recent bid reflected a subtle but growing shift in sentiment, which markets are slowly walking back their conviction that the Fed will cut the interest rate in September. "Sticky core inflation, fueled in part by service-sector dynamics and the slow-burn impact of tariffs, is keeping the Fed in a wait-and-see mode. "The ringgit remains vulnerable to a temporary widening in the US-Malaysia exchange rate spread. This does not necessarily break the broader 4.20-4.30 range, and we are still inside expected bands for now, but it does create a bias for further weakness,' he added. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the ringgit weakened against the US dollar in the early morning session to 4.2575 in response to the US Consumer Price Index, which continued to increase in June to 2.7 per cent from 2.4 per cent previously. "The latest CPI print appears to give the impression that the Fed may not be inclined to cut the Fed Fund Rate in the upcoming meeting in July. "In a nutshell, the ringgit maintained its narrow-range trade in light of the ongoing uncertainties over the US tariffs,' Mohd Afzanizam said. At the close, the ringgit was traded higher against a basket of major currencies. It strengthened against the British pound to 5.6786/6907 from yesterday's close of 5.7047/7107, improved against the Japanese yen to 2.8508/8569 compared with 2.8702/8734, and was up versus the euro at 4.9248/9352 versus 4.9539/9591. The local note also trended higher against ASEAN currencies. It traded higher vis-a-vis the Singapore dollar at 3.2999/3071 from 3.3095/3133 yesterday, inched up against the Indonesian rupiah to 260.3/260.9 from 260.6/261.0, and strengthened versus the Philippine peso to 7.43/7.45 from 7.47/7.49. It also gained against the Thai baht to 13.0301/0630 from 13.0784/0988. - Bernama
Malay Mail
16-07-2025
- Business
- Malay Mail
Ringgit eases to 4.24 against US dollar amid Fed rate uncertainty
KUALA LUMPUR, July 16 — The ringgit slipped 0.01 per cent against the US dollar at the close, as the local note continued trading on the defensive today, which offered some technical comfort for the ringgit. At 6pm, the local note was traded at 4.2400/2490 from 4.2395/2440 at Wednesday's close. SPI Asset Management managing partner Stephen Innes said the ringgit is under pressure mainly because of concerns that the United States (US) Federal Reserve (Fed) might keep interest rates higher for longer, as markets reassess the inflation outlook. He added that the US dollar has strengthened recently as investors are becoming less certain that the Fed will cut rates in September. Innes also said that the dollar's recent bid reflected a subtle but growing shift in sentiment, which markets are slowly walking back their conviction that the Fed will cut the interest rate in September. 'Sticky core inflation, fueled in part by service-sector dynamics and the slow-burn impact of tariffs, is keeping the Fed in a wait-and-see mode. 'The ringgit remains vulnerable to a temporary widening in the US-Malaysia exchange rate spread. This does not necessarily break the broader 4.20-4.30 range, and we are still inside expected bands for now, but it does create a bias for further weakness,' he added. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the ringgit weakened against the US dollar in the early morning session to 4.2575 in response to the US Consumer Price Index, which continued to increase in June to 2.7 per cent from 2.4 per cent previously. 'The latest CPI print appears to give the impression that the Fed may not be inclined to cut the Fed Fund Rate in the upcoming meeting in July. 'In a nutshell, the ringgit maintained its narrow-range trade in light of the ongoing uncertainties over the US tariffs,' Mohd Afzanizam said. At the close, the ringgit was traded higher against a basket of major currencies. It strengthened against the British pound to 5.6786/6907 from yesterday's close of 5.7047/7107, improved against the Japanese yen to 2.8508/8569 compared with 2.8702/8734, and was up versus the euro at 4.9248/9352 versus 4.9539/9591. The local note also trended higher against Asean currencies. It traded higher vis-a-vis the Singapore dollar at 3.2999/3071 from 3.3095/3133 yesterday, inched up against the Indonesian rupiah to 260.3/260.9 from 260.6/261.0, and strengthened versus the Philippine peso to 7.43/7.45 from 7.47/7.49. It also gained against the Thai baht to 13.0301/0630 from 13.0784/0988. — Bernama
Business Standard
16-07-2025
- Business
- Business Standard
Dollar index at over 3-week high above 98 mark
The dollar index regained momentum near a three-week high above 98 mark as investors awaited the latest producer price index report after hot inflation data pared back expectations of Fed interest rate cuts this year. Data released by the US bureau of labor statistics on Tuesday showed that the US Consumer Price Index (CPI) rose by 2.7% on year in June, up from 2.4% in May. This figure came in line with the market forecast. The core CPI, excluding fluctuating food and energy costs, increased by 2.9% in the same month versus 2.8% prior. On a monthly basis, the headline CPI and core CPI rose by 0.3% and 0.2%, respectively. Moreover, DXY is gaining on account of safe haven demand amid rising uncertainty from tariffs. US President Donald Trump notified 25 countries of new tariff rates set to take effect on August 1st, including major trading partners Canada, Mexico, and the European Union (EU). Currently, dollar index that measures the greenback against a basket of currencies is quoting at 98.29, marginally lower on the day after a spike to 3-week high yesterday.
