KUALA LUMPUR (March 26): The ringgit continued its upward momentum to close higher against the US dollar on Tuesday as traders trimmed their positions on the greenback ahead of the US Personal Consumption Expenditures (PCE) Price Index, scheduled this Friday.

At 6pm, the ringgit rose to 4.7109/7220 against the greenback from Monday’s close of 4.7205/7270.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the local currency was well supported against the greenback on Tuesday, reaching the 4.7100 level.

He said the US dollar index was also leaning on the lower side, declining by 0.09% to 104.134 points.

Last night, the Federal Reserve Bank of Atlanta president Raphael Bostic maintained his position that there could be one rate cut this year, adding further ambiguity to the market direction.

“Hence, market participants are likely to fall back on data to make fairer assessments of what might happen to rates going forward.

“As such, the PCE inflation which will be published on Friday will be closely monitored by the markets. Consensus estimates are projecting PCE inflation would be sustained at 2.4% in February,” he told Bernama.

At the close, the ringgit was traded weaker against a basket of major currencies.

It depreciated against the euro to 5.1225/1257 from Monday’s close of 5.1066/1137 and also against the British pound to 5.9733/9771 from 5.9549/9631.

The ringgit was also lower vis-a-vis the Japanese yen to 3.1194/1216 from 3.1185/1230 on Monday.

Meanwhile, the ringgit traded lower against other Asean currencies.

It slipped versus the Thai baht at 13.0021/0151 from 12.9627/9866 and was flat vis-a-vis the Indonesian rupiah to 298.7/299.1 from 298.7/299.3.

The local unit also fell against the Singapore dollar to 3.5112/5137 from 3.5060/5111 and against the Philippine peso, it declined to 8.38/8.38 from 8.37/8.39 previously.

https://www.theedgemarkets.com/node/706029