KUALA LUMPUR: The ringgit retreated against the US dollar in the early session today ahead of the US inflation report due to be announced on Wednesday.
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At 9.27 am, the local note eased to 4.4370/4395 versus the greenback from Monday’s closing rate of 4.4360/4380.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said investors were at a crossroads and would decide accordingly based on the incoming data points.
“On that note, the US dollar/ringgit should remain flat at around the RM4.43 level, which is quite close to the current support level of RM4.4254.
“For the US dollar/ringgit to pierce the support level, it requires further evidence that the US Federal Reserve might want to change its monetary stance which seems to hinge on Wednesday’s inflation report for April,” he told Bernama.
As for Malaysia, today’s data point will be the Industrial Production Index (IPI) for March 2023.
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“We are penciling in a 2.7 per cent growth, slower than 3.6 per cent expansion as production of export-oriented industries may not be so forthcoming,” said Mohd Afzanizam.
Meanwhile, the ringgit was traded higher against a basket of major currencies.
It advanced vis-a-vis the British pound at 5.5964/5995 versus 5.6084/6110 on Monday, appreciated against the euro to 4.8772/8799 from 4.8960/8982 and went up against the Japanese yen to 3.2833/2854 from 3.2854/2872 at the last close.
The local note traded mixed against Asean currencies.
It was at 3.3472/3496 against the Singapore dollar compared with 3.3489/3507 at Monday’s close and flat versus the Indonesian rupiah at 301.5/301.9 from 301.5/301.8 yesterday.
The local note declined vis-a-vis the Thai baht to 13.1420/1545 from 13.1184/1302 but improved further against the Philippine peso to 7.99/8.00 from 8.02/8.03. – Bernama