Ringgit Ends Lower Against US Dollar Amid Cautious Sentiment
By Abdul Hamid A Rahman
KUALA LUMPUR, July 14 (Bernama) -- The ringgit ended lower against the US dollar on Tuesday as investors stayed cautious ahead of the release of the US inflation data for June amid continued geopolitical tensions in West Asia.
At 6 pm, the local currency depreciated to 4.0760/0800 against the greenback from Monday’s close of 4.0680/0730.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the United States is scheduled to release its June Consumer Price Index (CPI) data later tonight. He noted that based on consensus estimates, US headline inflation for June is expected to moderate to 3.8 per cent year-on-year from 4.2 per cent in the previous month.
“Similarly, the consensus forecast points to a 2.8 per cent increase in the core CPI, following a 2.9 per cent rise previously. Although the June CPI is expected to moderate, uncertainties surrounding shipping traffic through the Strait of Hormuz could keep crude oil prices elevated, potentially leading to renewed acceleration in inflation,” he told Bernama.
Mohd Afzanizam said heightened geopolitical tensions in West Asia and possible disruptions to vessel traffic through the Strait of Hormuz would keep traders’ risk appetite guarded.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It weakened against the Japanese yen to 2.5131/5157 from 2.5110/5142 on Monday and declined versus the British pound to 5.4533/4586 from 5.4475/4542. However, the local note strengthened vis-a-vis the euro to 4.6470/6516 from 4.6501/6558 previously.
The ringgit traded mixed against regional currencies.
It eased versus the Singapore dollar to 3.1533/1567 from 3.1489/1530 and depreciated against the Indonesian rupiah to 225.3/225.6 from 224.6/225.0.
The local note strengthened against the Thai baht to 12.1556/1722 from 12.1953/2151 and was almost flat vis-a-vis the Philippine peso at 6.60/6.61 compared with 6.60/6.62 previously.
-- BERNAMA