KUALA LUMPUR, October 20 – The ringgit opened higher against the US dollar today as investors trade cautiously ahead of Consumer Price Index (CPI) data due to be released on Friday, this which could give some indication of the inflation rate in the country.
At 9:03 am, the local note stood at 4.1540 / 1560 against the greenback of 4.1690 / 1700 at Monday’s close.
The market was closed yesterday for the Maulidur Rasul celebrations.
An analyst said if the reading was higher than expected, it could boost the local rating a bit.
Some expect the country’s CPI to rise 2.2% from 2% in August.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.
As for the ringgit’s performance for the rest of the year, analysts predict that it may not be rosy with the reduction in the US Federal Reserve’s bond buying program or quantitative easing that could lead to a slump. outflow of foreign funds from investors.
The Fed is expected to begin its phase-down process as early as mid-November, according to the minutes of the September central bank meeting.
At home, faced with a basket of emerging currencies, the local note traded in a mixed manner.
It appreciated against the Singapore dollar at 3.0871 / 0888 against 3.0875 / 0884 and appreciated against the yen at 3.6241 / 6259 against 3.6449 / 6461.
However, the local rating slipped against the British Pound to 5.7292 / 7320 from 5.7245 / 7258 and weakened to 4.8323 / 8347 from 4.8285 / 8297 against the Euro. – Bernama