Business · Malaysia Bureau
Ringgit strengthens as investors regain appetite for regional assets
Malaysia's currency gained ground on Thursday as market sentiment improved, with traders closely monitoring US inflation data expected later in the session that could influence regional monetary policy decisions.
LSN Malaysia ·
The ringgit closed at higher levels against major currencies as improved risk appetite among investors buoyed demand for emerging market assets. Traders across the region capitalised on a more optimistic market tone, with the currency benefiting from the broader shift in sentiment away from risk-off positioning.
Market participants are maintaining a watchful stance ahead of the release of the US consumer price index later Thursday. The closely-watched inflation data is expected to provide fresh direction for currency markets and influence expectations around future interest rate decisions from the US Federal Reserve.
Analysts noted that the outcome of the CPI report could have significant ripple effects for Asian currencies, particularly in determining the strength of the US dollar relative to regional peers. A softer-than-expected reading could ease concerns about sustained high inflation, potentially supporting emerging market currencies.
The improved sentiment towards the ringgit follows recent volatility in regional currency markets, with investors gradually rebuilding risk positions as global economic conditions show signs of stabilisation. Traders will continue to monitor international economic data releases and central bank communications for further cues on the direction of monetary policy and currency valuations in coming sessions.