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

KUALA LUMPUR, June 9 — The ringgit opened higher against the US dollar and most major currencies today, tracking a slight pullback in the US Dollar Index (DXY) amid easing tensions in West Asia.

At 8 am, the local note appreciated to 4.0665/0780 against the greenback from Monday’s close of 4.0715/0760.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the DXY fell slightly to 99.98 points as Iran and Israel appeared to be moving towards easing strikes against each other, although such pledges remain fluid.

“Market sentiment is likely to stay cautious ahead of the US consumer price index (CPI) release tomorrow.

“In light of the ongoing war and its impact on fuel prices, amid the strong non-farm payrolls (NFP) outturn last week, the Federal Reserve is likely to maintain its restrictive monetary policy stance,” he told Bernama.

The ringgit traded mostly higher against a basket of major currencies. 

It appreciated against the British pound to 5.4219/4372 from 5.4249/4309 and gained against the Japanese yen to 2.5385/5459 from 2.5445/5475, but slid against the euro to 4.6879/7011 from 4.6867/6919 at yesterday’s close.

The local currency was also higher against regional peers.

It improved versus the Singapore dollar to 3.1548/1639 from 3.1577/1614, was up against the Thai baht at 12.3639/4049 from 12.3942/4128, strengthened against the Philippine peso to 6.59/6.61 from 6.60/6.61, and rose against the Indonesian rupiah to 223.5/224.3.2 versus 223.8/224.2 on Monday. — Bernama

Before the conflict began, inflation was at 2.4%, but the closure of the strait of Hormuz has affected energy prices

US inflation jumped to an annual rate of 4.2% in May, the third consecutive monthly increase since the start of the Iran war and a three-year high, as Americans continue to face steep oil prices.

Prices have increased sharply over the past several months, rising at an annual rate of 3.3% in March before going up to 3.8% in April. In February, before the conflict began, inflation was at 2.4%.

HONG KONG, June 10 — Stocks fell today to extend a rollercoaster week for markets, with tech firms once again bearing the brunt of the selling as investors fret over elevated prices and possible US interest rate hikes.

Worries over the Middle East crisis were also weighing on sentiment and pushing oil prices up after US and Iranian forces exchanged fire, just hours after Donald Trump said a peace deal to reopen the Strait of Hormuz was close.

After a blistering AI-centred, tech-led rally since March, traders have been on edge this month as they contemplate a possible US rate increase, with surging inflation caused by the spike in crude costs putting pressure on the Federal Reserve to act.

All eyes will be on the release later in the day of the crucial consumer price index, which is expected to come in at its highest level in more than three years.

That followed forecast-topping US jobs figures Friday that ramped up rate hike talk.

However, the US president—who lambasted Fed chair Kevin Warsh’s predecessor for not cutting enough—said earlier this month that he would “like to see lower interest rates” but that he would “let Kevin make that decision”.

The prospect of higher borrowing costs has hurt the tech industry in particular as they dent consumer spending while firms also rely on debt to power innovation.

Analysts said the tech sell-off was part of a shift by investors into other sectors. Out of 11 sectors in the S&P 500, only tech and energy fell Tuesday, while the other nine advanced.

The Nasdaq and S&P 500 — which have hit multiple record highs this year—both ended down while the broader Dow edged up.

Investors are also battling worries about extended valuations of firms—South Korean chip firm SK hynix has soared 220 percent this year alone—and questions when they will see a return on the vast sums that have been pumped into AI in recent years.

“Exuberance has been building for months, pushing stocks to one record after the next,” said John Cunnison at Baker Boyer Bank.

“So anything perceived to be negative for equities, from higher inflation to even the potential for rate hikes, will knock the market off its footing after a historic run.”

Tech-heavy Asian markets were in the red, with Seoul—the poster child of the region’s surge this year—down more than three percent.

The Kospi swung more than eight percent in either direction on Monday and yesterday following the US jobs figures.

Tokyo and Taipei were also well down, with Hong Kong, Shanghai, Singapore and Wellington also down. Manila and Sydney rose.

Jakarta also gained as the rupiah strengthened following a surprise rate hike by the Indonesian central bank.

Fears over a resurgence of the Middle East crisis added to trader anxieties after US forces struck sites in Iran in response to the downing of a helicopter on Monday, sparking a retaliatory attack on US bases in Bahrain and Jordan.

Trump said the United States would respond “in a strong manner” after “what they did with our helicopter last night”, in a telephone interview with ABC News.

The attacks came after the president had said negotiations to end the war were in their final stages—a claim he has made repeatedly in the past few weeks.

Crude jumped one percent Wednesday amid dimming prospects of a deal to reopen the Strait of Hormuz, through which a fifth of world oil passes. They had fallen as much as five percent at one point Tuesday on optimism a deal would be struck.

KUALA LUMPUR, June 11 — The ringgit opened higher against major currencies today but eased marginally against the US dollar after stronger-than-expected United States inflation reinforced expectations that the Federal Reserve (Fed) could keep interest rates higher for longer.

At 8 am, the local currency slipped to 4.0685/0750 against the greenback from yesterday’s close of 4.0670/0715.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Consumer Price Index (CPI) was the main focus overnight, with inflation accelerating to 4.2 per cent in May, the highest level since May 2023.

“The statistical releases gave the impression that the Fed is likely to be more hawkish when the Federal Open Market Committee members hold their meeting next week.

“US Treasury yields continued to climb, with the 10-year yield rising to 4.55 per cent, suggesting that inflation risks are increasing,” he told Bernama.

However, Mohd Afzanizam said foreign exchange markets are likely to remain cautious ahead of the Fed’s response to the latest CPI data and how it would be reflected in its projections for the federal funds rate.

The local currency traded higher against a basket of major currencies.

It strengthened against the Japanese yen to 2.5343/5385 from 2.5347/5377, appreciated against the British pound to 5.4367/4454 from 5.4486/4546, and rose against the euro to 4.6934/7009 from 4.7006/7058 at yesterday’s close.

The ringgit traded mostly higher against its regional peers.

It appreciated against the Singapore dollar to 3.1583/1636 from 3.1591/1628 and strengthened against the Thai baht to 12.3363/3635 from 12.3688/3871 previously.

However, it eased against the Indonesian rupiah to 226.7/227.1 from 226.6/227.0 and was little changed against the Philippine peso at 6.62/6.64 compared with 6.62/6.63 at yesterday’s close. — Bernama