Ringgit Higher Against Major Currencies, Eases Against Greenback At Close

By K. Naveen Prabu

KUALA LUMPUR, Aug 11 (Bernama) -- The ringgit closed higher on Tuesday against most major currencies but eased against the greenback ahead of the release of key US inflation data.

At 6 pm, the ringgit edged down to 4.0905/0940 versus the US dollar from Monday's close of 4.0885/0930.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the upcoming US Consumer Price Index (CPI) data on Wednesday would be an important indicator for markets to gauge the direction of US interest rates. This, coupled with a US labour market that appeared less robust, suggested that demand-driven inflation might not be the main source of price pressures, he said.

“As such, monetary tightening may not be the appropriate policy measure to bring (US) inflation down towards the two per cent target,” he told Bernama. 

At the close, the local currency ended mostly higher against a basket of major currencies.

It strengthened against the Japanese yen to 2.5680/5703 from 2.5736/5766 at Monday’s close and rose against the euro to 4.7188/7228 from 4.7247/7299, but slipped vis-a-vis the British pound to 5.5238/5285 from 5.5170/5231 previously.

The local note was also higher against regional currencies.

It climbed against the Singapore dollar to 3.1930/1962 from 3.1961/2002 on Monday and rose against the Thai baht to 12.3323/3481 from 12.3894/4079 previously.

The ringgit also appreciated against the Philippine peso to 6.68/6.69 from 6.73/6.74, and versus the Indonesian rupiah it climbed to 229.0/229.3 from 230.2/230.6 .

-- BERNAMA