THE ringgit retreated versus the US dollar today after three consecutive days of gains amid mixed overnight greenback performance.

At 9.06am, the local note dropped to 4.7100/7150 against the dollar from yesterday’s close of 4.6885/6950.

SPI Asset Management managing director Stephen Innes said after a significant ringgit rally yesterday, the local currency has pulled back versus the greenback ahead of the hotly anticipated US Consumer Price Index (CPI) release later today.

He said the dollar was choppy in its overnight performance, but the direction turned higher ahead of the CPI print as weaker China data sent growth fears reverberating through G-10 forex exchange markets.

He said the ringgit is piggybacking the Thai baht, which is more robust with substantial foreign investment flows likely due to travel sector optimism. 

This is an optimistic sign that money is coming back into the region, he said.

“For today, however, excess risk-taking is likely to be pared back. I expect to see the ringgit rally materially ahead of the US CPI print,” he told Bernama.

The ringgit traded mostly lower against a basket of major currencies except the British pound, against which it was marginally higher at 5.3628/3685 from 5.3651/3725 yesterday.

It declined against the Singapore dollar to 3.3614/3655 from 3.3513/3562 previously and fell vis-a-vis the Japanese yen to 3.2225/2261 from 3.2159/2208 yesterday.

The local currency also slipped against the euro to 4.7227/7277 from 4.7101/7177 at yesterday’s close. – Bernama, November 10, 2022.