KUALA LUMPUR, April 12 — The ringgit rebounded to open higher against the US dollar on Wednesday, as investors await more clues on the pace of inflation in the United States (US) from the March Consumer Price Index (CPI), said an analyst.
At 9am, the local note rose to 4.4145/4180 versus the greenback from Tuesday’s closing rate of 4.4160/4210.
Bank Muamalat Malaysia Bhd chief economist and social finance Dr Mohd Afzanizam Abdul Rashid said market participants would synthesise their views on the US rates based on the highly anticipated US CPI print.
“The series of US Federal Reserve’s speeches this week could also shape market players’ conviction which we think will tilt to the hawkish side,” he told Bernama.
Meanwhile, in its latest World Economic Outlook report, the International Monetary Fund (IMF) has downgraded its global gross domestic product growth forecast for 2023 and 2024 to 2.8 per cent and 3.0 per cent, respectively.
Mohd Afzanizam said this represents a 0.1 percentage point cut from January’s forecast, attributed to the stubbornly high inflation as well as the recent financial sector turmoil that could undermine the baseline scenario for a soft landing.
“As for the ringgit, it will continue to stay soft at around RM4.41-RM4.42 today as investors are expected to remain guarded,” he said.
The ringgit was traded mostly higher against a basket of major currencies this morning, with the exception of the euro as it had depreciated to 4.8224/8262 against the currency from 4.8196/8251 at Tuesday’s close.
The local note had improved versus the British pound to 5.4868/4911 from 5.4939/5002 yesterday and appreciated against the Japanese yen to 3.3025/3054 from 3.3173/3216 previously.
Concurrently, the ringgit traded higher against Asean currencies.
Against the Philippines’ peso, it strengthened to 8.02/8.04 from 8.04/8.06 at Tuesday’s close and also rose against the Singapore dollar at 3.3132/3161 from 3.3156/3196 yesterday.
It was also marginally higher vis-a-vis the Indonesian rupiah at 296.50/296.90 from 296.6/297.10 on Tuesday and went up against the Thai baht to 12.8796/8955 from 12.8998/9193 previously.
— Bernama
