Ringgit Slips Against USD on Strong US Economic Data
The Malaysian ringgit opened lower against the US dollar on Friday, affected by stronger-than-expected US economic data. The local currency eased to 4.0680/0745 against the greenback from 4.0630/0670 yesterday's close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid pointed out that the US producer price index (PPI) rose more than expected to 5.4 per cent year-on-year in August, up from 4.8 per cent in July.
This led to a higher probability of a US Federal Reserve rate hike next week, estimated by Quintex Intel global strategist Stephen Innes at around 75 per cent.
Despite this, the ringgit drew support from its relatively resilient domestic economic indicators and investment activity linked to the artificial intelligence boom.