Ringgit extends losses for 3rd straight day

THE ringgit extended losses against the US dollar for the third straight day after another US hot inflation report further confirmed the possibility of a ‘higher for longer’ interest rate path.

At 6pm, the ringgit fell to 4.4310/4345 versus the greenback from yesterday’s closing of 4.4020/4060.

SPI Asset Management managing director Stephen Innes said the US dollar has been in demand as the continued strength in inflation data suggests the Federal Reserve’s monetary policy tightening will continue to persist.

“On the heels of a hotter-than-expected Consumer Price Index (CPI) print, yesterday’s Producer Price Index (PPI) scorcher confirmed ‘higher for longer’. This sets the bearish tone for the ringgit today,’’ he told Bernama.

The US PPI rose by 0.7% in January, stronger than the expected 0.4%, while  the annual figure slowed to 6% from 6.5%.

Innes said the ringgit sell-off has come a long way and for sentiment to turn there has to be some sign of weaker US growth and an easing of inflation angst.  

Meanwhile, the ringgit was traded mixed against a basket of major currencies.

It rose versus the British pound to 5.2919/2961 from 5.3075/3123 at yesterday’s close and improved against the Japanese yen to 3.2864/2892 from 3.2883/2915.

However, it fell vis-a-vis the Singapore dollar to 3.3062/3093 from 3.2989/3024 yesterday and weakened versus the euro to 4.7137/7174 from 4.7101/7144 previously. – Bernama, February 17, 2023.