BERNAMA – The ringgit closed slightly higher against the US dollar with market sentiment sanguine over the United States (US) inflation data.
At 6pm, the ringgit stood at 4.6500/6535 against the greenback compared with 4.6570/6610 at Tuesday’s close.
Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said investors are anticipating softer US inflation data from the Consumer Price Index (CPI).
“It is quite crucial. The main worry would be US inflation rate, whether it would defy market expectation to turn up higher than expected,” he told Bernama.
The consensus view is that US headline and core CPI would record slower increases in June at 3.1 per cent (May: 4.0 per cent) and 5.0 per cent (May: 5.3 per cent), respectively.
He also said that Malaysia’s Industrial Production Index (IPI) had rebounded to 4.7 per cent in May 2023 against a negative 3.3 per cent recorded in the previous month, which suggests that Malaysia could withstand the prospects of slower global growth this year.
At home, the ringgit traded mostly higher against a basket of major currencies at yesterday’s close.
