KUALA LUMPUR, Dec 12 — The ringgit closed lower against the American dollar for the fourth consecutive day on Thursday after the US Consumer Price Index (CPI) rose the most in seven months, although it stood in line with forecasts.
At 6pm, the local currency slid to 4.4350/4395 against the US dollar, compared to yesterday’s close of 4.4300/4355.
The November US CPI expanded 2.7 per cent, higher than the 2.6 per cent the previous month. Core CPI, on the other hand, sustained at 3.3 per cent for the third consecutive month from 3.2 per cent in August, suggesting the US inflation rate remained sticky.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the sticky inflation rate would mean the US Federal Reserve might want to shift its monetary easing strategy next year.
"This could mean less rate cuts or perhaps no rate cuts at all. It's very dollar-positive now and therefore the ringgit could remain range-bound," he told Bernama.
The ringgit traded lower against other major currencies.
It weakened versus the British pound to 5.6591/6648 from 5.6389/6459, declined against the euro to 4.6612/6659 from 4.6515/6573 and slipped against the Japanese yen to 2.9074/9106 from 2.9013/9051 at Wednesday’s close.
The local currency also traded mostly lower against Asean currencies.
It narrowed against the Singapore dollar to 3.3008/3044 versus 3.2937/2980 on Wednesday, went down versus the Thai baht to 13.1058/1261 from 13.0640/0875, and fell against the Philippine peso to 7.61/7.62 from 7.59/7.61 previously.
However, the ringgit edged up against the Indonesian rupiah to 278.1/278.5 from 278.2/278.7 previously.
— Bernama
