Ringgit Gains Against Majors Amid Easing Inflation Worries

The Malaysian ringgit experienced a mixed performance on Thursday, August 13. Against major currencies, it rose to 2.5637/5701 against the Japanese yen and 4.7092/7207 against the euro. However, it slipped slightly against the US dollar to 4.0850/0950 from yesterday's close of 4.0835/0875.

According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the moderation in the US consumer price index (CPI) had a positive effect on the ringgit. The CPI inflation rate has decreased to 3.4 per cent in July from 3.5 per cent a month ago.

The easing of inflation worries and concerns over the reopening of the Straits of Hormuz contributed to the ringgit's performance. Dr Mohd Afzanizam noted that 'the outturn was in line with consensus estimates,' implying that the Fed may not raise interest rates as quickly.