Ringgit slides against the greenback in early session

The local currency also traded mostly lower against other currencies

THE ringgit opened lower against the US dollar this morning amid the higher-than-expected US Producer Price Index PPI data for September, which came in at 8.5% versus 8.4% forecast, said a dealer. 

At 9am, the local currency slid to 4.6850/6875 against the greenback from yesterday’s close of 4.6820/6855.

ActivTrades trader Dyogenes Rodrigues Diniz said the new data signals that inflation remains high in the US as the PPI measures the change in the price of goods, products and services used by companies to produce their products.

“An even more important driver was the US Federal Open Market Committee (FOMC) meeting minutes, released yesterday, which provided some clues on the next monetary policy steps to be adopted by US Federal Reserve,” he said in a note today. 

He added that several FOMC members remain determined to maintain price stability by raising interest rates, but noted that it is also necessary to balance the increase so that it does not have undesirable effects on the economy.

Overall, he said the interest rates in the US will likely continue to increase until year-end, but may do so at a slower pace.

Meanwhile, the ringgit traded mostly lower against a basket of major currencies.

The local note slipped against the British pound to 5.2050/2078 from 5.1825/1864 from yesterday’s close, fell vis-a-vis the euro to 4.5505/5530 from 4.5453/5487 and slid versus the Singapore dollar to 3.2666/2688 from 3.2595/2622 yesterday. 

However, the ringgit strengthened against the Japanese yen to 3.1914/1936  from 3.1987/2014 previously. — Bernama / pic TMR FILE