The ringgit opened unchanged against the US dollar on Thursday as investors remained cautious ahead of the release of US consumer price index (CPI) data on Friday.
At 8am, the local currency was quoted at 4.0670/4.0720 against the greenback, the same level recorded at Wednesday’s close.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the upcoming US CPI data could shape expectations over the United States Federal Reserve’s interest rate direction and influence market sentiment.
“There seems to be less catalyst for a stronger ringgit, especially as traders will be watching the US CPI print to be published on Friday,” he said.
Afzanizam said markets were also in a risk-off mood, with traders seeking safer assets amid heightened volatility and rising crude oil prices.
“Hence, we expect the US dollar-ringgit pair to trade within a range of RM4.05 to RM4.07 today,” he added.
He said Brent crude oil prices were hovering at US$101.21 a barrel as tensions between the United States and Iran were expected to escalate.
Against major currencies, the ringgit weakened across the board. It slipped against the Japanese yen to 2.6483/2.6519 from 2.6474/2.6509, while the euro rose to 4.7311/4.7370 from 4.7275/4.7333.
The local currency also eased against the British pound to 5.5100/5.5167 from 5.5043/5.5110 at Wednesday’s close.
Trading against regional currencies was mixed. The ringgit strengthened slightly against the Thai baht to 12.3459/12.3675 from 12.3579/12.3788 previously, while it remained unchanged against the Philippine peso and Indonesian rupiah at 6.50/6.52 and 232.2/232.6 respectively.
However, the ringgit weakened against the Singapore dollar, which rose to 3.2165/3.2210 from 3.2150/3.2192 previously.
