KUALA LUMPUR, May 30 — The ringgit closed marginally higher as markets await the United States (US) Federal Reserve’s (US Fed) inflation data and personal consumption expenditures (PCE) price index report for April, an analyst said.
At 6pm, the ringgit edged up to 4.7020/7070 versus the greenback from Wednesday’s close of 4.7030/7060.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said consensus forecasts for April’s PCE and core PCE index to increase by 2.7 per cent and 2.8 per cent year-on-year, respectively, similar to the levels in March.
He noted that this has provided strong support to the US dollar.
“If the PCE falls more than expected and next week’s non-farm payrolls are lower than anticipated, it could support the case for a rate cut. Otherwise, a strong US dollar is likely to persist,” Afzanizam said to Bernama, adding that based on official statements, the US Fed is not about to ease its monetary policy.
At the close, the ringgit was also traded mostly higher lower against a basket of major currencies.
The local unit appreciated against the euro to 5.0838/0892 from 5.1032/1065 on Wednesday’s closing and improved versus the British pound to 5.9767/9831 from 6.0010/0049 yesterday.
However, it was slightly lower versus the Japanese yen at 2.9959/9992 from Wednesday’s close of 2.9923/9944.
At the same time, the ringgit had strengthened versus its Asean peers.
It appreciated against the Thai baht to 12.7727/7908 from 12.7938/8068 at Wednesday’s close, firmed vis-à-vis the Indonesian rupiah to 289.0/289.4 from 290.9/291.3 yesterday and rose versus the Philippine’s peso to 8.02/8.03 from 8.04/8.05 previously.
It had also traded higher against the Singapore dollar at 3.4791/4833 from 3.4850/4875 yesterday.
— Bernama
