Ringgit extends winning streak, climbs for third straight day ahead of key US inflation data

KUALA LUMPUR, June 25 — The ringgit continued its uptrend for the third consecutive day, closing higher against the US dollar, major currencies and Asean peers today as investors await the United States (US) Personal Consumption Expenditures (PCE) inflation data later tonight.

At 6 pm, the local note appreciated to 4.1160/1200 against the greenback from 4.1355/1400 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US PCE inflation data will be the key focus in the near term, as expectations of further US interest rate hikes gained traction following last week’s Federal Open Market Committee (FOMC) meeting.

“Nonetheless, crude oil prices are making a headway with Brent crude oil currently lingering at US$72.86 per barrel, a 38.3 per cent decline from the previous high of US$118.03 per barrel on April 29.

“On that note, the US inflation rate is expected to ease in June, which would alter the course of monetary policy should crude oil prices continue to normalise towards the pre-war level of around US$60-US$70 per barrel,” he told Bernama.

At the close, the ringgit was stronger against a basket of major currencies.

It gained against the British pound to 5.4261/4314 from 5.4481/4540 at Wednesday’s close, rose versus the euro to 4.6762/6807 from 4.6921/6972 yesterday, and was firmer vis-à-vis the Japanese yen at 2.5437/5464 from 2.5567/5595 previously.

The local note was also firmer against regional currencies.

It appreciated against the Singapore dollar to 3.1742/1775 from 3.1848/1885 at Wednesday’s close, and increased versus the Thai baht to 12.3370/3538 from 12.3658/3845 previously.

The ringgit also advanced versus the Indonesian rupiah, rising to 229.4/229.7 from 230.3/230.7 yesterday and strengthened against the Philippine peso to 6.71/6.72 from 6.72/6.73 previously. — Bernama