KUALA LUMPUR (March 29): The ringgit ended the day higher against the US dollar on improving domestic demand following the recent sell-off, said an analyst. 

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the local currency rebounded amid a firmer greenback ahead of the US' personal consumption expenditures (PCE) inflation data to be unveiled later.

At 6pm, the ringgit rose to 4.7215/7280 against the greenback from Wednesday’s close of 4.7320/7370.

He told Bernama that the US PCE price index for February will be closely monitored when the US Bureau of Economic Analysis publishes the report on Friday night.

In January, the PCE price index moderated to 2.4% year-on-year from 2.6% in the previous month, while consensus estimates showed that most economists are looking at 2.5% for February.

The US Federal Reserve has maintained its PCE forecast during its meeting last month at 2.4% for 2024.

“The ringgit has been oscillating between RM4.7242 and RM4.7390 against the US dollar today as risk assets such as equities were gaining momentum and set to close at a decent level for the first quarter of the year,” he said.

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

It appreciated against the euro to 5.0907/0977 from 5.1233/1287 at Wednesday’s close and strengthened vis-a-vis the British pound to 5.9548/9630 from 5.9742/9805 previously. 

The local note was also firmer versus the Japanese yen at 3.1194/1241 from 3.1261/1298 on Wednesday.

The ringgit was also higher against Asean currencies.

It rose versus the Thai baht to 12.9712/12.9983 from 12.9925/13.0130 on Wednesday and was also higher vis-a-vis the Indonesian rupiah at 297.7/298.2 compared to 298.3/298.8 previously.

It improved against the Singapore dollar to 3.4987/5040 from 3.5112/5151 at the last close and increased versus the Philippine peso to 8.40/8.42 from 8.41/8.43. 

https://www.theedgemarkets.com/node/706357