This morning, the US dollar continued to weaken against the Malaysian Ringgit (RM) which showed a strong movement to 4.67900 compared to yesterday's 4.7149.
This followed the dollar falling more than 1% after US consumer price data showed inflation slowed somewhat in October and weighed on market expectations of the Fed's monetary policy.
Bank Muamalat's Head of Economics and Social Finance, Dr Afzanizam stated that US unemployment benefit claims data increased to 220,000 last week from 218,000 previously. This suggests that the US labor market is slowly weakening and it is highly likely that the Fed will keep interest rates on hold at its final policy meeting next month.
US treasury yields fell by 7.0 and 9.0 basis points to 4.844% and 4.444% respectively. Meanwhile, the US Dollar index is stable around 104 points.
This is expected to have a positive impact on the ringgit today.
