KUALA LUMPUR, Jan 11 — The ringgit ended higher for three days straight ahead of the highly anticipated United States Consumer Price Index (CPI) print release.
The CPI data could determine the Federal Reserve’s next move to either raise rates by 25 basis points or 50 basis points at the next Federal Open Market Committee (FOMC) meeting, which is scheduled from January 31 to February 1.
At 6pm, the local note rose to 4.3700/3725 against the greenback from Tuesday’s close of 4.3715/3755.
SPI Asset Management managing partner Stephen Innes said the ringgit was trading fractionally stronger but off the best levels of the day as traders square up positions ahead of the release of the key figure tomorrow.
The ringgit hit a 4.36 level earlier but retreated afterwards.
“The market is lean for a softer CPI print. Hence, a 25 basis points cut (is possible) but the market will need that confirmation bias before selling more US dollars.
“Asian risk appetite generally remains supported, which is good for the local currency market,” he told Bernama.
Innes noted that market participants surveyed by the global provider of financial market data and infrastructure Refinitiv expected prices to rise by 6.5 per cent year-on-year in the final month of 2022, down from 7.1 per cent in November.
Meanwhile, the ringgit also traded better against a basket of major currencies.
It appreciated against the Singapore dollar to 3.2820/2841 from 3.2856/2891 at Tuesday’s close and strengthened vis-à-vis the Japanese yen to 3.2984/3007 from 3.3160/3196 previously.
The local currency gained versus the British pound to 5.3017/3047 from 5.3258/3307 and improved against the euro to 4.6938/6965 from 4.6972/7015.
— Bernama
