KUALA LUMPUR (Sept 14): The ringgit slipped further to a fresh 24-year low against the US dollar at the opening on Wednesday (Sept 14), in line with lower oil prices, as more investors shifted towards safe-haven assets.
At 9.05am, the local currency had slid to 4.5200/5220 against the greenback from 4.5070/5085 at Tuesday’s close.
ActivTrades trader Dyogenes Rodrigues Diniz said US consumer price index (CPI) data showed higher-than-expected inflation of 8.3% last month, versus the forecast of 8.1%.
“This higher reading left investors wondering about how big an interest rate hike we could see in the next US Federal Reserve meeting on Sept 21.
“Prior to the release of the CPI data, the market was predicting a 50-basis-point to 75-basis-point increase, but now many have raised their forecast to a 75-basis-point to one-basis-point hike,” he told Bernama.
Diniz said the markets had responded strongly to the data, resulting in another strong appreciation of the US dollar against other currencies.
He also noted that the benchmark Brent crude price had fallen by 0.08% to US$93.10 (RM421.09) per barrel.
On Tuesday, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz was reported as saying that Malaysia is not experiencing an economic crisis just because the ringgit is trading at a low level against the greenback.
He explained that the ringgit’s performance should be viewed holistically, not just in comparison to the US dollar, as the local note has also strengthened against other currencies.
Meanwhile, the ringgit was traded higher against a basket of major currencies.
The local unit rose against the Singapore dollar to 3.2153/2174 from Tuesday’s close at 3.2320/2333, and appreciated against the yen to 3.1282/1301 from 3.1690/1703.
It also advanced against the pound to 5.1989/2012 from 5.2768/2786 on Tuesday, and increased against the euro to 4.5105/5125 from 4.5818/5833 previously.-BERNAMA