The ringgit traded marginally lower against the US dollar at the opening today on a cautious tone ahead of the US Federal Open Market Committee (FOMC) meeting minutes’ publication this week, said an economist.
At 9am, the ringgit eased slightly to 4.7870/7930 against the greenback compared with Monday’s close of 4.7850/7890.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said even though the US markets were closed yesterday for a public holiday, it is believed that market sentiments were still reeling from last Friday’s US Producer Price Index (PPI), which came in higher than expected at 0.9 per cent in January against consensus estimates of 0.6 per cent.
A higher PPI signifies higher inflation, which could lead to interest rate increase.
