KUALA LUMPUR, 15 JULY: Despite falling global oil prices and fears over dollar inflation, the ringgit began marginally higher against the US dollar today on increased demand, according to a trader. The local note was trading at 4.1970/1990 at 9 a.m., vs the greenback, which was trading at 4.2000/2030 at Wednesday’s closing.
Concerns about greenback inflation have grown, according to ActivTrades trader Dyogenes Rodrigues Diniz, following the release of the US Producer Price Index (PPI), which monitors inflation from the standpoint of expenses to industry or product producers.
“From a macroeconomic standpoint, the market appears to expect new monetary policies to curb this inflation situation,” he told Bernama, adding that a possible steep drop in fiscal stimulus would strengthen the US currency.
Meanwhile, economist Adam Mohamed Rahim of Bank Islam Malaysia Bhd said the ringgit will likely stay under pressure because to the high number of Covid-19 infections in the country, as well as the fluctuating oil market.
“As a result, the ringgit is projected to trade in the RM4.19-RM4.20 area today,” he said.
The ringgit was generally trading down versus a basket of major currencies at the opening bell.
The local currency sank against the euro to 4.9663/9687 from 4.9539/9574 at Wednesday’s closing, to 3.8186/8207 from 3.8012/8043, and to 3.0997/1016 against the Singapore dollar from 3.0973/0998 yesterday.
It, on the other hand, gained ground against the British pound, rising to 5.8086/8114 from 5.8157/8199 yesterday./n
