Ringgit ends higher vs US dollar ahead of US inflation data

On Wednesday, the Malaysian ringgit managed to close higher against the US dollar as traders awaited the release of the US Consumer Price Index (CPI) report for July. The ringgit opened at 4.0905/4.0940 and ended at 4.0835/4.0875, showing an improvement from the previous close. Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid attributed the ringgit's strength to its support against the US dollar, while other Asian currencies remained mixed.

Afzanizam also mentioned that economists were expecting a moderate US inflation rate for July, at 3.4%, compared to 3.5% for June. Higher-than-expected inflation could potentially cause the US dollar to strengthen. At the close, the ringgit also strengthened against a basket of major currencies, including the Japanese yen, the euro, the British pound, the Singapore dollar, the Philippine peso, and the Indonesian rupiah. However, it experienced a slight dip against the Thai baht.