Ringgit eases against greenback, higher against major currencies

KUALA LUMPUR - The Malaysian ringgit experienced a slight depreciation against the US dollar ahead of crucial US inflation data, but it showcased an upward trend against other major currencies on Tuesday, according to the latest market data. At 6pm, the ringgit settled at 4.0905/4.0940 against the US dollar, marking a decline from Monday’s closing range of 4.0885/4.0930.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid pointed out that the imminent release of US Consumer Price Index (CPI) data on Wednesday would serve as a critical gauge for the market to foresee potential shifts in US interest rates. He cautioned that monetary tightening could not be the optimal solution to curb inflation and bring it closer to the 2% target.

At the close, the local currency exhibited a predominantly positive performance across a diverse range of currencies. It strengthened against the Japanese yen, moving from 2.5736/2.5766 to 2.5680/2.5703, and against the euro, climbing from 4.7247/4.7299 to 4.7188/4.7228. Conversely, the ringgit experienced a slight decline against the British pound, falling from 5.5170/5.5231 to 5.5238/5.5285.

The currency also demonstrated an upward trajectory against regional currencies such as the Singapore dollar, rising from 3.1961/3.2002 to 3.1930/3.1962, and the Thai baht, increasing from 12.3894/12.4079 to 12.3323/12.3481. Furthermore, the ringgit made gains against the Philippine peso, surging from 6.73/6.74 to 6.68/6.69, and against the Indonesian rupiah, climbing from 230.2/230.6 to 229.0/229.3.