Ringgit starts unchanged against US dollar as markets eye key inflation data and Fed outlook

KUALA LUMPUR, Aug 28 — The ringgit opened unchanged against the US dollar today as investors stayed on the sidelines ahead of key US inflation data.

At 8am, the local currency stood at 4.2335/2365, the same level as Wednesday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is likely to trade within the RM4.22 to RM4.24 range today, with potential profit-taking as traders remain cautious ahead of the US personal consumption expenditures (PCE) inflation report due tomorrow.

“The US Dollar Index (DXY) hovered around 98 points as markets remain anxious about the Federal Reserve’s policy outlook in September. Richmond Fed president Tom Barkin signaled the possibility of a modest rate adjustment at the next meeting, citing only slight variations in the economy,” he told Bernama.

In early trade, the ringgit slipped against most major currencies. It fell against the euro to 4.9312/9347 from 4.9058/9093, weakened versus the Japanese yen to 2.8737/8759 from 2.8591/8611, and declined against the British pound to 5.7169/7210 from 5.6890/6930.

The local note was also mostly lower against regional peers. It eased versus the Singapore dollar to 3.2940/2966 from 3.2843/2869 and weakened against the Thai baht to 13.0631/0784 from 13.0330/0474.

However, it remained flat against the Philippine peso at 7.40/7.41 and the Indonesian rupiah at 258.6/258.9. — Bernama