After the release of the US initial economic data that indicated inflation concerns, Malaysian Ringgit continued to appreciate against the greenback for the third consecutive day on Friday (Dec 2).
Malaysian Ringgit rose to 4.3900/3995 against the US dollar at the opening as compared to Thursday’s close of 4.4030/4100.
“The greenback continued to decline against the ringgit on Friday and is now trading below the 4.4000 level after the release of the lower-than-expected US Core Personal Consumption Expenditure (PCE) Price Index — a key indicator of purchasing trends and inflation,” ActivTrades trader Dyogenes Rodrigues Diniz was quoted as saying.
The currency trader also said that, “The lower reading suggests that the US Federal Reserve may adopt a more dovish monetary policy stance, which accelerated the downward movement in the greenback against the ringgit.”
Meanwhile from the view of technical analysis, Diniz remarked that the USD/MYR has breached an important support region at 4.4430, while the next support level is at 4.3000.
On the contrary, the ringgit depreciated against a basket of major currencies in the opening session.
