KUALA LUMPUR: The ringgit opened higher against major currencies but remained flat against the US dollar amid renewed expectations of a possible US Federal Reserve (Fed) interest rate hike following stronger-than-expected inflation data.
At 8am, the local currency traded at 4.0540/4.0590 against the greenback, unchanged from Tuesday’s close of 4.0540/4.0580.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said US inflation data had heightened concerns over further monetary tightening, with the US Consumer Price Index (CPI) rising 0.4% month-on-month in October, above the consensus estimate of 0.3%.
He said the prospect of higher interest rates also pushed yield on the two-year US Treasury note up by 18 basis points to 4.74%, while the US Dollar Index strengthened 0.57% to 102.233 points.
