Ringgit opens unchanged against US dollar after inflation surprise
The currency gained against other major currencies as stronger-than-expected US inflation revived expectations of a possible Federal Reserve rate increase.
The ringgit held steady against the US dollar at the opening of trading in Kuala Lumpur, with its 8 am quotation at 4.0540/0590 compared with the previous close of 4.0540/0580. It strengthened against other major currencies.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said higher-than-forecast US inflation had increased concerns about further monetary tightening.
The US Consumer Price Index rose 0.4 per cent month-on-month in October, exceeding the consensus forecast of 0.3 per cent, he said.
He also linked expectations of higher interest rates to an 18-basis-point increase in the two-year US Treasury yield to 4.74 per cent. The US Dollar Index gained 0.57 per cent to reach 102.233 points.
