THE ringgit gained marginally against the US dollar at the start of trading today as the latter’s rally paused amid the likelihood of Federal Reserve (Fed) rate cuts on expectation of easing inflation print.

At 9am, the ringgit rose slightly to 4.6430/6470 versus the greenback from yesterday’s close of 4.6495/6535.

The US’ December consumer price index and producer price index were due this week, which would provide further clues on how much room the Fed has to ease rates this year, a trader said.

He said a drop in inflation would make it more likely the US central bank would cut rates in the coming months.

At home, the ringgit remained weaker against a basket of major currencies.

It declined vis-a-vis the British pound to 5.9221/9272 from 5.9025/9076 yesterday, weakened versus the euro to 5.0864/0908 from 5.0852/0895 and depreciated against the Japanese yen to 3.2261/2291 from 3.2234/2264.

It was mixed against other Asean currencies.

It rose vis-à-vis the Philippine peso to 8.34/8.35 from 8.35/8.36 yesterday and appreciated versus the Indonesian rupiah to 299.0/299.4 from 299.4/299.8.

The local unit was easier against the Thai baht to 13.3056/3228 from 13.2661/2870 and lower against the Singapore dollar at 3.4954/4987 from yesterday’s close of 3.4940/4973. – Bernama, January 9, 2024.