Today, the Malaysian Ringgit (RM) still opened higher against the US dollar at a time when the market was in a more alert situation to observe key developments such as the US inflation data and the Malaysian Cabinet reshuffle.
At 9am this morning, the ringgit strengthened slightly to 4.6750 compared to the US dollar which closed last Monday at 4.6805.
According to Bank Muamalat Malaysia Bhd's Head of Economics and Social Finance, Dr Mohd Afzanizam said the consensus estimate has put the main reading of the US consumer price index (CPI) for November 2023 at 3.1% which is slightly down from the previous 3.2%. Meanwhile, core CPI is likely to remain at 4.0%.
With that, the US Dollar Index (DXY) experienced an increase of 0.08% to 104.095 points.
He also said that the market now believes that US rates will be lowered next year and the main focus will be on the upcoming Federal Open Market Committee (FOMC) meeting.
He also said that the Federal Reserve (Fed) is on the lookout for a cut of around 25 to 50 basis points on their interest rates next year.
For now, the ringgit is still stuck in a declining value and will rise again next year after the Fed implements a major interest rate cut.
In addition, the Malaysian Cabinet reshuffle is expected to be carried out today and involves the appointment of a new Finance Minister II.
Meanwhile, the ringgit was mostly traded higher against major currencies including the British pound and the euro but slightly weaker against the Japanese yen.
It is also strong against other Asean currencies such as the Philippine peso, the Indonesian rupiah and the Singapore dollar. However, the ringgit is slightly weaker against the Thai baht.
