KUALA LUMPUR, Aug 24 — The ringgit ended higher against the US dollar on Tuesday as the greenback continued to decline ahead of the United States’ (US) economic data release this week, coupled with firmer oil prices, a dealer said.

At 6pm, the local note stood at 4.2160/2190 versus the greenback from yesterday’s close of 4.2245/2275.

ActivTrades trader Dyogenes Rodrigues Diniz said the market is waiting for data on US new home sales, which is likely to provide fresh clues about the health of the US economy.

“On Thursday, the US gross domestic product (GDP) data will be the key — a below expectation figure may prompt the Federal Reserve to keep its monthly US$120 billion (RM507 billion) financial stimulus for longer in order to have a desired effect on the economy.

Advertisement

“This could weaken the dollar in the medium term. From a technical point of view, the greenback against ringgit could drop to as low as 4.1750 before gathering strength to rise again,” he said.

Meanwhile on the home front, Diniz said investors will be eyeing the Consumer Price Index (CPI) for Malaysia, scheduled to be released tomorrow, as it could provide vital information about the economic recovery in the country.

At press time, the benchmark Brent crude oil price gained by 1.16 per cent to US$69.55 per barrel.

Advertisement

At the close, the local note was traded mixed against a basket of major currencies

It gained against the Singapore dollar to 3.1075/1100 from 3.1083/1107 yesterday, and improved against the euro to 4.9458/9493 from 4.9536/9572 previously.

The local note, however, depreciated vis-a-vis the British pound to 5.7810/7851 compared with yesterday’s close of 5.7740/7781 and weakened against the Japanese yen to 3.8429/8459 from 3.8387/8414 yesterday. — Bernama