THE ringgit continued to weaken against the US dollar this morning as the market is concerned about inflation in the United States which would determine the Federal Reserve (Fed) pivot. 

At 9.28am, the local note slipped to 4.4930/4980 against the greenback from yesterday’s close of 4.4850/4895. 

Bank Muamalat Malaysia Bhd economics and market analysis and social finance head Mohd Afzanizam Abdul Rashid said the US inflation rate is very much tilted to the upside.

He said the core Personal Consumption Expenditure Price Index has gone up more than expected in January to 4.7% against market expectation of 4.3%. 

“This has provided further strength to the US dollar index, which is currently hovering at more than 105 points. 

“The dollar-ringgit resistance level is around RM4.52 at present. It might linger around such level in the immediate term following a hawkish stand by the Fed,” he told Bernama. 

The ringgit was traded mostly higher against a basket of major currencies.

The local unit strengthened vis-a-vis the euro to 4.7513/7566 from 4.7572/7620 yesterday, rose against the British pound to 5.4028/4088 from 5.4152/4206, but slipped against the Japanese yen to 3.2954/2993 from 3.2799/2835. 

Meanwhile, the ringgit traded lower against other Asean currencies. 

It depreciated versus the Singapore dollar to 3.3304/3343 from 3.3247/3285 on Tuesday, fell against the Thai baht to 12.7494/7693 from 12.6892/7073, decreased against the Indonesian rupiah to 294.30/294.80 from 293.80/294.30 yesterday and was lower against the Philippine peso to 8.13/8.15 from 8.10/8.12 previously. – Bernama, March 1, 2023.