KUALA LUMPUR: The ringgit opened lower against the US dollar on Thursday as stronger-than-expected US inflation data bolstered expectations of a possible interest rate increase by the US Federal Reserve (Fed), lending support to the greenback.
At 8am, the ringgit edged down to 4.0820/4.0865 against the US dollar from Wednesday’s close of 4.0805/4.0850.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index (DXY) rose 0.36% to 102.55 points after headline inflation accelerated to 3.7% in September from 3.4% in August, exceeding the market consensus of 3.6%.
He said core inflation also increased to 2.6% in September from 2.4% in August, surpassing the consensus estimate of 2.4%.
