Ringgit closes slightly higher against US dollar, major currencies

KUALA LUMPUR: The ringgit ended slightly higher against the greenback and other major currencies on Thursday, shrugging off the impact of stronger-than-expected US inflation data for May.

At 6pm, the local note inched up to 4.0650/4.0690 versus the greenback from yesterday’s close of 4.0670/4.0715.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit held steady at the RM4.06 level despite the US consumer price index (CPI) hitting a three-year high in May at 4.2%.

“This has happened ahead of the US Federal Open Market Committee (FOMC) meeting next week on June 16 and 17. The US Federal Reserve (Fed) is likely to maintain its restrictive monetary policy stance next week, which can be US dollar-positive in the near term,” he told Bernama.

At the same time, Afzanizam said uncertainties over the war in Iran will keep crude oil prices elevated, keeping the inflation rate high.

The local currency traded higher against a basket of major currencies.

It climbed versus the Japanese yen to 2.5321/2.5347 from 2.5347/2.5377 at yesterday’s close, gained against the British pound to 5.4325/5.4378 from 5.4486/5.4546 and rose vis-a-vis the euro to 4.6878/4.6924 from 4.7006/4.7058.

The ringgit was also stronger against regional peers.

It appreciated versus the Singapore dollar to 3.1556/3.1589 from 3.1591/3.1628 on Wednesday and was up against the Thai baht at 12.3331/12.3501 compared to 12.3688/12.3871 previously.

It gained vis-a-vis the Indonesian rupiah to 225.9/226.2 from 226.6/227 and remained unchanged versus the Philippine peso at 6.62/6.63.