The ringgit gained marginally against the US dollar at the start of trading on Tuesday as the latter’s rally paused amid the likelihood of Federal Reserve rate cuts on expectation of easing inflation print.
At 9 am, the ringgit rose slightly to 4.6430/6470 versus the greenback from Monday’s close of 4.6495/6535.
December US consumer price index (CPI) and producer price index (PPI) are due this week, which will provide further clues on how much room the Fed has to ease rates this year, a trader said.
He said a drop in inflation would make it more likely that the US central bank would cut rates in the coming months.
At home, the ringgit remained weaker against a basket of major currencies.
It declined vis-a-vis the British pound to 5.9221/9272 from 5.9025/9076 on Monday, weakened versus the euro to 5.0864/0908 from 5.0852/0895 and depreciated against the Japanese yen to 3.2261/2291 from 3.2234/2264 previously.
It was mixed against other Asean currencies.
It rose vis-à-vis the Philippine peso to 8.34/8.35 from 8.35/8.36 yesterday and appreciated versus the Indonesian rupiah to 299.0/299.4 from 299.4/299.8.
The local unit was easier against the Thai baht to 13.3056/3228 from 13.2661/2870 and lower compared to the Singapore dollar at 3.4954/4987 from Monday’s close of 3.4940/4973. – Bernama
