Kuala Lumpur: The ringgit opened slightly higher against the US dollar today, ahead of the Malaysian Consumer Price Index (CPI) report for May 2022, due to be released by the Ministry of Statistics (DoSM) today, according to an analyst.
At 9.00 am, the local currency rose to 4.4020/4050 against the dollar from Wednesday’s close of 4.4045/4075.
Chief Economist of Bank Islam Malaysia Bhd., Dr. Muhammad Afdhanizam Abdul Rashid said the CPI for May 2022 is expected to be 3 per cent higher; A sign of the potential for further monetary policy normalization.
“In this sense, the local currency will be supported because the possibility of a rate hike overnight will help keep the interest rate differential with the US interest rate at a decent level,” he told Bernama.
Meanwhile, he said recession fears will continue to drive sentiment.
“Therefore, the demand for safe haven currencies such as the US dollar will remain the same,” he added.
Meanwhile, the ringgit was trading mixed against a basket of major currencies.
The local currency strengthened against the Singapore dollar to 3.1653/1679 from Thursday’s close of 3.1682/1706 and rose against the euro to 4.6283/6314 from 4.6318/6349 previously.
However, it fell against the Japanese yen to 3.2583/2608 from 3.2534/2559 and eased against the British pound to 5.3907/3944 from 5.3722/3758 yesterday. – program