KUALA LUMPUR, Aug 18 — The ringgit closed higher against the US dollar today as traders continued to believe that the United States Federal Open Market Committee’s (FOMC) meeting minutes will reinforce the market’s expectations of a dovish statement from the Federal Reserve, said an analyst. 

At 6pm, the local currency was pegged at 4.1800/1850 against the greenback from yesterday’s close of 4.1900/1960.

AxiCorp chief global market strategist Stephen Innes said with oil prices stabilising, the ringgit and the Malaysian Government Securities look attractive from a real yield perspective.

"But the ringgit continues to track the broader G10 currencies higher as the US dollar was weaker across the board,” he told Bernama.

Earlier today, the Department of Statistics announced that Malaysia’s consumer price index (CPI) declined 1.3 per cent in July 2020 to 119.9 from 121.5 in the same month last year.

"The lower inflation gives Bank Negara Malaysia more cues to drop rates and this would be favourable for growth and bond flows,” said Innes.

The local unit declined against the Singapore dollar to 3.0625/0666 from 3.0597/0650 yesterday and depreciated vis-a-vis the yen to 3.9576/9627 from 3.9391/9458 yesterday. 

The ringgit fell against the British pound to 5.5051/5133 from 5.4952/5035 and weakened against the euro to 4.9746/9818 from 4.9672/9756 previously. — Bernama