KUALA LUMPUR, June 26 — The ringgit opened marginally lower against the United States dollar today as stronger-than-expected US economic data boosted the greenback.
On another front, the reopening of the Strait of Hormuz saw risk appetite improving, which limited the ringgit’s decline.
At 8am, the local currency fell to 4.1170/1270 against the greenback from 4.1160/1200 at yesterday’s close.
The US reported a better-than-expected first-quarter gross domestic product (GDP) growth of 2.1 per cent, exceeding the consensus forecast of 1.6 per cent, while the personal consumption expenditures (PCE) inflation rate came in at 4.1 per cent in May, in line with market expectations.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell 0.18 per cent to 101.431 points after PCE data was released, representing two consecutive quarters of sub 1 per cent growth. This gives the impression of anaemic growth in consumer spending.
“As such, the rally in the US dollar may not seem sustainable, especially in the context of lower crude oil prices following the 60-day timeline for peace deal negotiation between the US and Iran,” he added.
At the open, the ringgit traded weaker against a basket of major currencies.
It fell against the British pound to 5.4295/4427 from 5.4261/4314 at yesterday’s close, declined versus the euro to 4.6777/6891 from 4.6762/6807 yesterday, and eased vis-à-vis the Japanese yen at 2.5445/5508 from 2.5437/5464 previously.
The local note traded almost flat against regional currencies.
It opened flat against the Singapore dollar at 3.1742/1824 from 3.1742/1775 since yesterday’s close, was unchanged versus the Indonesian rupiah at 229.4/230.1 from 229.4/229.7 yesterday, and was flat against the Philippine peso at 6.71/6.73 from 6.71/6.72 previously.
The local note decreased versus the Thai baht to 12.3245/3618 from 12.3370/3538 previously.
