Friday 29 Mar 2024
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KUALA LUMPUR (June 2): The ringgit depreciated to 4.1760 against the U.S. dollar, the weakest point so far today, ahead of the crucial U.S.employment data tomorrow. Employment and inflation data offer clues on the timing of the U.S. interest rate hikes.

Today, the ringgit pared losses at 4.1690 against a strengthening U.S. dollar at 10:28am. The exchange rate so far today was between 4.1345 and 4.1760.

The US Dollar Index, which measures the U.S. dollar's value against a basket of global currencies, stood at 95.307 at 10:15am. On May 2 this year, the index was at 92.626.

Today, Reuters quoted the U.S. Federal Reserve as saying in an anecdotal report that U.S. inflation pressures grew slightly across most of the U.S. from April to mid-May. The report could make the central bank more comfortable that inflation is on track to rise back to the Fed's 2% target.

The Fed caught investors off guard last month, when it signaled its next rate hike could be just weeks away. It meets next on June 14-15.

In Malaysia today, Affin Hwang Investment Bank Bhd retail research head Datuk Dr Nazri Khan wrote in a note that there was "solid justification" for a near-term U.S. interest rate hike, based on economic data announced so far.

"So far, strong job data, convincing housing data, good jump in the industrial production index and a bullish surge in the Michigan Consumer Sentiment Index, already hint solid justification for the Fed to raise the rate in the next meeting," Dr Nazri said.

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