KUALA LUMPUR, June 10 — The ringgit opened higher against major currencies but eased against the US dollar today, as market sentiment remained cautious ahead of the release of the United States Consumer Price Index (CPI) data tonight.

At 8 am, the local note depreciated to 4.0600/0640 against the greenback from Tuesday’s close of 4.0580/0630.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the foreign exchange market is expected to remain guarded ahead of the highly anticipated US CPI report.

“Bond traders appear to be upping their bets for a 25-basis-point interest rate hike by the US Federal Reserve this year, in light of the robust jobs data and higher inflation expectations going forward.

“This could mean that the US dollar would be well supported in the near term,” he told Bernama.

The ringgit traded higher against a basket of major currencies. 

It rose against the Japanese yen to 2.5312/5338 from 2.5332/5365 at Tuesday’s close, was higher versus the British pound to 5.4286/4340 from 5.4329/4395, and gained against the euro to 4.6832/6878 from 4.6915/6972 previously.

The local currency mostly strengthened against regional peers.

It appreciated versus the Singapore dollar to 3.1536/1570 from 3.1563/1604 yesterday, and was up against the Thai baht at 12.3239/3432 from 12.3531/3732 previously.

However, it was marginally lower against the Indonesian rupiah to 224.8/225.1 versus 224.7/225.1, and was unchanged against the Philippine peso at 6.59/6.60 as the previous close. — Bernama

KUALA LUMPUR, June 8 — The ringgit ended lower against the US dollar today as stronger-than-expected United States (US) labour market data reinforced expectations that the US Federal Reserve would maintain its restrictive monetary policy stance, boosting demand for the greenback, an economist said.

At 6 pm, the local note depreciated to 4.0715/0760 against the US dollar from last Friday’s close of 4.0280/0320.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit eased by 1.04 per cent against the US dollar, in tandem with most Asian currencies, which also traded lower against the greenback.

He said crude oil prices were also higher today due to the ongoing war between the US, Israel, and Iran, which will result in the closure of the Straits of Hormuz.

At the time of writing, the benchmark Brent crude oil increased 3.77 per cent to US$96.60 per barrel.

“A higher inflation rate going forward and how the global market would react to such macroeconomic conditions will be a key factor that will shape market sentiments.

“It appears that a higher benchmark interest rate seems to be the antidote for the currency, and this has led to cautious market sentiments,” he told Bernama.

Similar to its performance against the greenback, the ringgit also traded mostly lower against a basket of major currencies. 

It depreciated against the British pound to 5.4249/4309 from 5.4233/4287 at the close last Friday, and slid against the Japanese yen to 2.5445/5475 from 2.5183/5209 last week, but turned slightly higher versus the euro at 4.6867/6919  from 4.6882/6928 previously.

The local currency also depreciated against regional peers.

It fell versus the Singapore dollar to 3.1577/1614 from 3.1390/1424 last Friday, and was down against the Thai baht at 12.3942/4128 from 12.3433/3605 previously.

It had also turned weaker against the Philippine peso to 6.60/6.61 from 6.55/6.56 last week, and eased against the Indonesian rupiah to 223.8/224.2 versus 223.3/223.6 previously. — Bernama