Ringgit opens slightly higher ahead of US PPI report

KUALA LUMPUR: The ringgit opened slightly higher today amid cautious trade as investors kept an eye on major developments, including the release of US February’s Producer Price Index (PPI) and Retail Sales which will be released tonight.

At 9 am, the ringgit rose to 4.6820/6865 against the greenback from Wednesday’s close of 4.6845/6878.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said consensus estimate showed that the PPI could be sustained at 0.3 per cent month-on-month (January 2024: 0.3 per cent) while retail sales could go up by 0.8 per cent month-on-month from -0.8 per cent previously.

“It seems the inflation rate will take some time to reach the two per cent goal and that has resulted in frustration in market sentiments as the US Federal Reserve (Fed) officials are adamant to bring the inflation rate towards its objective,” he told BK.

Besides, he said, market participants appear to be anxious ahead of the impending US Federal Open Market Committee (FOMC) meeting next week.

Hence, the US dollar/ringgit pair would continue to linger around RM4.68 in light of cautious sentiments in the market, he added.

Meanwhile, the ringgit was traded lower against a basket of major currencies.

The local currency depreciated vis-a-vis the Japanese yen to 3.1723/1754 from 3.1650/1672 on Wednesday, fell against the British pound to 5.9930/5.9987 from 5.9840/9878 yesterday and weakened versus the euro to 5.1263/1312 from 5.1164/1197 previously.

The ringgit was traded mixed against other ASEAN currencies.

It slid versus the Thai baht to 13.1296/1462 from 13.1053/1200 at Wednesday’s close and eased against the Singapore dollar to 3.5145/5184 from 3.5121/5149 previously.

However, the local currency was flat against the Philippine peso at 8.45/8.48 compared with 8.45/8.47 yesterday and inched up vis-a-vis the Indonesian rupiah to 300.5/301.0 from 300.7/301.1. – BK