Ringgit trades in tight range versus US dollar ahead of US CPI print

KUALA LUMPUR: The ringgit traded in a narrow range today at between 4.676 to 4.684 against the US dollar as market players await the United States (US) Consumer Price Index (CPI) inflation data for February later tonight, said an economist.

At 6 pm, the ringgit improved to 4.6765/6800 against the greenback from Monday’s close of 4.6805/6830.

It was reported that inflation in the US is forecast to rise at an annual pace of 3.1 per cent in February, matching the increase recorded in January.

The core CPI inflation rate, which excludes volatile food and energy prices, is forecast to tick down to 3.7 per cent from 3.9 per cent in the same period.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid, meanwhile, said Malaysia’s Industrial Production Index (IPI) outturn was better than expected when the index grew by 4.3 per cent which was above the market consensus of 2.0 per cent.

“This certainly gives the impression that the economy is on track to achieve higher growth in 2024 while the Bank Negara Malaysia’s monetary policy remains supportive of the economy,” he told BK.

At the close, the ringgit was traded higher against a basket of major currencies.

The local currency was better against the British pound at 5.9808/9853 from 6.0107/0139 on Monday, strengthened vis-a-vis the Japanese yen to 3.1718/1744 from 3.1923/1942, and was slightly higher versus the euro at 5.1114/1152 from 5.1181/1209 previously.

The local note also traded mostly higher against other Asean currencies.

It appreciated against the Singapore dollar to 3.5133/5162 from Monday’s close of 3.5197/5218 and rose versus the Thai baht to 13.1436/1601 versus 13.2229/2363 previously.

It increased vis-a-vis the Indonesian rupiah to 299.9/300.3 from 300.1/300.5 at yesterday’s close but remained unchanged against the Philippine peso at 8.45/8.46 previously. – BK