KUALA LUMPUR: The continued optimism about positive US inflation numbers boosts sentiment, enabling the ringgit to open higher on Thursday.
At 9.01 am, the ringgit appreciated to 4.6360/6410 versus the greenback from Wednesday’s close of 4.6400/6440.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid observed that the average US gasoline prices stood at US$3.69 per gallon in December 2023.
"Compare that with the average for December 2022, which is about US$3.92 per gallon, this would give us a six per cent year-on-year decline. On that note, there is a chance that the headline consumer price index (CPI) could come in lower than expected,” he said.
He added that the latest comments by the Federal Reserve Bank of New York president John Williams about the US may be able to bring down inflation also aided sentiment globally.
On that note, the US Dollar Index (DXY) was down to 102.362 points from 102.57 points previously.
"However, he qualifies that more evidence is needed before the US central bank can cut the Fed Fund Rate lower.
"As such, the ringgit is likely to maintain its narrow range trade of between RM4.63 and RM4.65 today.
"From technical charts, the US dollar and ringgit pair are currently in the neutral zone, suggesting that the local unit could be trading sideways in the near term,” he added.
Meanwhile, the ringgit was traded mostly lower against a basket of major currencies.
It strengthened versus the Japanese yen to 3.2018/2047 from 3.1869/1906 previously.
However it was weaker versus the euro to 5.0894/0949 from 5.0789/0833 yesterday and depreciated vis-a-vis the British pound to 5.9123/9187 from 5.9044/9095.
The ringgit was traded mostly higher against Asean currencies.
It appreciated against the Singapore dollar to 3.4836/4876 from 3.4851/4883 at Wednesday’s close, went up against the Thai baht to 13.2272/2483 from 13.2598/2777 and was higher versus the Indonesian rupiah at 297.7/298.2 from 297.9/298.4.
The local currency was flat vis-à-vis the Philippine peso at 8.24/8.27 from 8.24/8.25 yesterday. - Reuters
