Ringgit Opens Firmer On US Rate Cut Hopes

By Anas Abu Hassan

KUALA LUMPUR, Sept 11 (Bernama) -- The ringgit opened firmer against the US dollar and most major currencies on Thursday, tracking expectations of United States (US) interest rate cuts after softer economic data.

At 8 am, the local unit stood at 4.2085/2300 against the greenback, up from Wednesday’s close of 4.2185/2220.

Bank Muamalat Malaysia Bhd, chief economist Dr Mohd Afzanizam Abdul Rashid said the US Producer Price Index (PPI) eased to 2.6 per cent in August, below market forecasts of 3.3 per cent, strengthening the case for a Federal Reserve (Fed) rate cut next week.

He added that the US Consumer Price Index (CPI), due later tonight, would be another key data point ahead of the Fed’s policy decision.

“Consensus estimates show CPI rising to 2.9 per cent in August from 2.7 per cent. On that note, the dollar-ringgit is expected to range between RM4.20 and RM4.22 today as traders remain cautious ahead of the Federal Open Market Committee (FOMC) meeting next week,” he told Bernama.

The ringgit strengthened to 2.8555/8703 against the yen from 2.8614/8639 at Wednesday’s close, appreciated to 5.6949/7240 against the pound from 5.7127/7174, and rose to 4.9244/9495 against the euro from 4.9416/9457.

It also traded higher against ASEAN currencies, advancing to 3.2820/2993 versus the Singapore dollar from 3.2883/2912, and edging up to 13.2447/3199 against the baht from 13.2699/2872.

The local note was little changed at 255.5/256.9 against the rupiah from 256.1/256.4, and steady at 7.37/7.41 against the peso from 7.38/7.39 previously.

-- BERNAMA