KUALA LUMPUR (April 1): The ringgit opens slightly lower against the US dollar on Monday on soft landing in the US inflation data last Friday.
At 9.03am, the ringgit slid to 4.7235/7270 against the greenback from last Friday’s close of 4.7215/7280.
SPI Asset Management managing director Stephen Innes said that in theory, the US dollar should not be stronger as inflation came in as expected, but it is getting support from moderately hawkish Federal Reserve (Fed) chatter.
“The US Fed continues to advocate patience or ‘no rush’ to cut interest rates until inflation is nearer to their 2% inflation target after the personal consumption expenditures (PCE) price index rose 0.3% in February from January.
“Hence, the dollar remains firm at this morning’s opening although I expect US rates to ease a touch and the dollar to weaken slightly,” he told Bernama.
Innes said that encouraging macro data from China over the weekend should help support the local note in the near term.
The purchasing managers’ index (PMI) for China’s manufacturing sector rose 1.7 percentage points (ppt) to 50.8%, the PMI of non-manufacturing activity was up 1.6 ppt at 53.0%, and the comprehensive PMI output index grew 1.8 ppt to 52.7% — signalling an improving China economy.
The ringgit was traded lower against a basket of major currencies.
It depreciated against the euro to 5.0976/1014 from 5.0907/0977 at last Friday’s close and weakened vis-a-vis the British pound to 5.9681/9726 from 5.9548/9630 previously.
The local note also eased versus the Japanese yen at 3.1203/1228 from 3.1194/1241 last Friday.
The ringgit was also mostly lower against Asean currencies.
It was down versus the Thai baht to 12.9913/13.0063 from 12.9712/9983 last Friday and was also lower vis-a-vis the Indonesian rupiah at 297.8/298.2 compared to 297.7/298.2 previously.
It declined against the Singapore dollar to 3.5036/5064 from 3.4987/5040 at the last close and was flat versus the Philippine peso at 8.40/8.42.
