Ringgit Firms As Us Rate Hike Expectations Recede

By Abdul Hamid A Rahman

KUALA LUMPUR, July 16 (Bernama) -- The ringgit ended marginally higher against the US dollar today, supported by softer-than-expected United States (US) inflation data and reduced expectations of a near-term rate hike.

At 6 pm, the local currency appreciated to 4.0710/0745 against the greenback, compared with Wednesday’s close of 4.0760/0805.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Asian currencies were generally firmer against the US dollar as expectations of a US rate hike receded.

“Both the US Consumer Price Index and Producer Price Index came in lower than expected in June, following a decline in crude oil prices during the month.

“In addition, the US Federal Reserve (Fed) chair’s remarks to the Senate Banking Committee last night suggested that the Fed is not in a hurry to raise the federal funds rate,” he told Bernama.

However, the ringgit traded mostly lower against a basket of major currencies at the close today.

It weakened versus the British pound to 5.4987/5034 from 5.4578/4638 at Wednesday’s close and declined vis-a-vis the euro to 4.6678/6718 from 4.6536/6587 previously, although it edged higher against the Japanese yen at 2.5102/5125, compared with 2.5103/5132 yesterday.

Similarly, the local note performed mostly weaker against regional currencies.

It eased versus the Singapore dollar to 3.1583/1612 from 3.1546/1583 at the close on Wednesday, depreciated against the Indonesian rupiah to 226.3/226.6 from 225.5/225.9 yesterday, and slipped vis-a-vis the Thai baht to 12.1247/1399 from 12.1198/1371 previously.

Meanwhile, it strengthened against the Philippine peso to 6.60/6.61 from 6.61/6.62 yesterday.

-- BERNAMA