KUALA LUMPUR, Oct 24 — The ringgit was flat against the US dollar in the early trading session today as traders await more developments in Malaysia, following the release of Consumer Price Index (CPI) data yesterday.
At 9.13am, the local note was quoted at 4.1860/1890 versus the greenback from 4.1860/1890 recorded at yesterday’s close.
In a note, AmBank Research said headline inflation in September rose below expectations, up 1.1 per cent year-on-year from 1.5 per cent year-on-year in August, and it expects low fuel and transport prices to continue putting a lid on the overall upside pressure on headline CPI.
Looking at the current inflation data, the research house said it clearly suggests there is ample scope for Bank Negara Malaysia to reduce rates by 25 basis points from the current three per cent overnight policy rate during the Nov 5 Monetary Policy Committee (MPC) meeting.
“The economy has outperformed its Asian neighbours in the first half this year while the economic outlook for 2020 is said to be stronger, projected to grow by 4.8 per cent from 4.7 per cent in 2019.
“On that note, we have taken a view of a 60 per cent chance of no rate cut and a 40 per cent chance of a rate cut in the upcoming MPC meeting,” it added.
Meanwhile, the local note was traded mostly lower against other major currencies except the yen, against which it rose to 3.8538/8576 from 3.8620/8651.
It declined against the Singapore dollar to 3.0743/0770 from 3.0707/0734, eased against the British pound to 5.4066/4114 from 5.3794/3850 and declined against the euro to 4.6611/6661 from 4.6506/6557. — Bernama
