Did US PCE data helping the two per cent target boost ringgit weekly gains?

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US PCE Data Contributed to Ringgit's Weekly Gains

The ringgit experienced stronger performance against the US dollar for the week due to the latest United States Personal Consumption Expenditures (PCE) price index. This data suggested that the US inflation rate is moving towards the two per cent target, with January's index moderating to 2.4 per cent from 2.6 per cent in the previous month. This indication of moderating inflation in the US is a positive factor for the ringgit.
Moderating US Inflation Supports Ringgit

The release of the US PCE price index for January revealed a slowdown in inflation, reaching 2.4 per cent compared to 2.6 per cent in December. This trend is seen as a signal that inflation is on a path to meet the Federal Reserve's two per cent target. Such developments in the US economy can influence currency markets, and in this instance, it contributed to the ringgit's improved standing against the US dollar for the week.
Technical and Fundamental Factors at Play

Beyond the PCE data, other indicators also supported the ringgit's performance. The US Dollar Index (DXY) saw a slight decrease of 0.13 per cent, reaching 103.838 points. Additionally, higher-than-expected initial jobless claims in the US and a lower-than-expected Chicago Purchasing Managers' Index (PMI) for February, which fell to 44 against a forecast of 48.1, further pressured the dollar. Bank Negara Malaysia's recent assertion that the ringgit is undervalued also provides a positive fundamental outlook, suggesting potential for further appreciation.
Ringgit's Performance Against Other Currencies

The ringgit also demonstrated strength against a basket of major currencies during the week. It strengthened against the British pound, trading at 5.9926/9977 from the previous day's close of 6.0042/0111. Similarly, it appreciated against the euro, moving to 5.1330/1373 from 5.1434/1493, and against the Japanese yen, closing at 3.1492/1521 compared to Thursday's 3.1642/1681. The local currency also saw gains against the Thai baht and the Singapore dollar, although it experienced mixed performance against other Asean currencies, weakening against the Philippine peso and the Indonesian rupiah.

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Did US PCE data helping the two per cent target boost ringgit weekly gains?

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