Updated February 28th, 2024 at 13:07 IST
The Malaysian ringgit remained steady against the US dollar after touching its lowest level.
Asian currencies dip amid Fed rate-cut speculations
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Asian currency dip: Asian currencies showed a slight decline on Wednesday, with cautious trading ahead of a crucial US inflation report that could influence the Federal Reserve’s decisions on interest rates. The Philippine peso and the Indonesian rupiah were down 0.4 per cent and 0.3 per cent, respectively, marking their fourth consecutive declines.
The Malaysian ringgit remained steady against the US dollar after touching its lowest level since January 1998 last week. Malaysia’s central bank expressed agreement with Prime Minister Anwar Ibrahim’s view that the currency is undervalued and should be trading higher based on positive economic fundamentals.
Analysts at Goldman Sachs believe the ringgit could weaken further, citing weak domestic fundamentals and limited intervention by the Bank Negara Malaysia in the foreign exchange markets.
In the equities market, Asian stocks were mixed ahead of the US core personal consumption expenditures (PCE) price index data release on Thursday. Markets anticipate a 0.3 per cent monthly increase in the PCE for January.
Singapore shares were down 0.7 per cent, while Malaysian equities lost 0.5 per cent. On the other hand, Indonesian stocks were up 0.6 per cent, and South Korean shares gained as much as 1.2 per cent.
Investors are also awaiting February inflation reports from Indonesia and Thailand, due on Friday, along with any signals regarding policy easing by regional central banks amidst a downward trend in inflation in Southeast Asian economies.
(with Reuters inputs)
