KUALA LUMPUR: The ringgit slipped further to a new 24-year low contrary to the US dollar in the opening on Wed, in line with lower essential oil prices as more investors shifted towards safe-haven assets.
From 9. 05 feel, the local currency slid to 4. 5200/5220 against the greenback through 4. 5070/5085 at yesterday’s close.
ActivTrades trader Dyogenes Rodrigues Diniz stated the United States (US) Customer Price Index (CPI) data showed higher-than-expected inflation at 6. 3 per cent, versus the forecast of eight. 1 per cent.
“This higher reading through left investors wanting to know about how big home loan hike we could observe at the next Government Reserve meeting upon Sept 21.
“Prior to the release of the CPI data, the market was forecasting a 0. 5 – 0. 75 increase, but now several have raised their forecast to a 0. 75-1. 0 % hike, ” this individual told Bernama.
Diniz said the markets had responded strongly to the data, leading to another strong understanding of the US dollar against other foreign currencies.
He furthermore noted that essential oil benchmark Brent crude price fell simply by 0. 08 per cent to US$93. ten per barrel.
Yesterday, Finance Ressortchef (umgangssprachlich) Tengku Datuk Seri Zafrul Tengku Abdul Aziz was documented as saying that Malaysia is not experiencing an economic crisis just because the ringgit is trading at a low level against the greenback.
He explained that the ringgit’s performance ought to be viewed holistically, not only in comparison with the US money, as the local take note has also strengthened towards other currencies.
Meanwhile, the ringgit was traded increased against a basket of major foreign currencies.
The local device rose against the Singapore dollar to several. 2153/2174 from Tuesday’s close of three or more. 2320/2333 and valued against the Japanese yen to 3. 1282/1301 from 3. 1690/1703.
It experienced also advanced contrary to the British pound from 5. 1989/2012 from 5. 2768/2786 yesterday and increased contrary to the euro to four. 5105/5125 from four. 5818/5833 previously. — Bernama