RINGGIT OPENS HIGHER DESPITE STRONGER GREENBACK

KUALA LUMPUR, Dec 12 (Bernama) -- The ringgit rose against the US dollar in early trade on Thursday despite the greenback’s appeal as a safe-haven currency remaining firm amid the risk-averse sentiment surrounding the market.

At 8.11 am, the ringgit appreciated to 4.4250/4355 against the US dollar compared with yesterday’s close of 4.4300/4355.

The greenback gained additional ground while the US Dollar Index (DXY) stays at elevated levels after the US Consumer Price Index (CPI) came broadly in line with expectations, said Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.

He said the November US CPI stood at 2.7 per cent, higher from 2.6 per cent the previous month. Core CPI, on the other hand, sustained at 3.3 per cent for three consecutive months from 3.2 per cent in August, suggesting the inflation rate remained sticky.

“It appears that the US Federal Reserve is likely to remain hawkish in 2025. They would continue to cut rates as the current monetary policy stance is still deemed restrictive.

“However, they would ease the policy rates judiciously as the upside risks to inflation is clearly visible with Trump 2.0 policies on tariff. As such, the ringgit is expected to remain rangebound today,” he told Bernama.

The ringgit traded mostly lower against other major currencies.

It weakened versus the British pound to 5.6498/6632 from 5.6389/6459, depreciated against the Japanese yen to 2.9083/9154 from 2.9013/9051 but strengthened versus the euro to 4.6493/6604 from Wednesday’s close of 4.6515/6573.

The local currency, however, traded mixed against ASEAN currencies.

It fell against the Singapore dollar to 3.2951/3032 versus 3.2937/2980 on Wednesday and was lower versus the Thai baht to 13.0817/1224 from 13.0640/0875.

The ringgit was unchanged against the Philippine peso at 7.59/7.61 but edged up against the Indonesian rupiah to  277.9/278.7 from 278.2/278.7 previously.

-- BERNAMA