Ringgit Stages Rebound To End Higher Against Greenback Ahead Of US Inflation Report

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Aug 28 (Bernama) -- The ringgit snapped a two-day losing streak to end higher against the greenback on Thursday on rising bets for an interest rate cut in the United States next month and ahead of a key US inflation report tomorrow.

At 6 pm, the local note bounced to 4.2140/2195 versus the US dollar from yesterday’s close of 4.2335/2365.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was seen on firmer footing today, especially during the afternoon session, gaining 0.38 per cent to RM4.2188.  “The US Dollar Index (DXY) was down 0.07 per cent to 98.167 points. Tonight, the second estimate for the US gross domestic product (GDP) growth for the second quarter will be announced,” he told Bernama.

He said in the first estimate, the US economy was projected to grow by three per cent from -0.5 per cent in the preceding quarter. “However, the bulk of the growth came from the 30 per cent plunge in imports, which led to a significant contribution to growth from higher net exports. In a nutshell, the higher growth in the June quarter looks superficial and the higher tariff has taken a serious toll on imports,” he added.

Investors are also awaiting the US Personal Consumption Expenditures (PCE) data tomorrow - a key inflation report - amid rising bets for an interest rate cut in the United States in September.

At the close, the ringgit settled lower against a basket of major currencies.

It edged down versus the euro to 4.9089/9153 from 4.9058/9093 at Wednesday’s close, fell vis-à-vis the Japanese yen to 2.8639/8679 from 2.8591/8611, and dipped against the British pound to 5.6893/6967 from 5.6890/6930.

It traded higher against other ASEAN currencies.

The local note strengthened versus the Singapore dollar to 3.2809/2854 from 3.2843/2869 yesterday, advanced against the Thai baht to 13.0142/0364 from 13.0330/0474, and went up against the Philippine peso to 7.38/7.39 from 7.40/7.41. It gained versus the Indonesian rupiah to 257.6/258.1 from 258.6/258.9.

-- BERNAMA