Ringgit ends higher vs US dollar ahead of US inflation data

KUALA LUMPUR – The Malaysian ringgit closed higher against the US dollar on Wednesday, as market participants remained cautious ahead of the upcoming release of the US Consumer Price Index (CPI) report for July. The ringgit reached 4.0835/4.0875 against the US dollar by 6pm, up from yesterday's closing rate of 4.0905/4.0940. Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the ringgit was well supported against the US dollar on the day, while other Asian currencies were mixed against the greenback.

Afzanizam highlighted that economists anticipated a moderate US inflation rate of 3.4% in July compared to 3.5% in June, pointing out that higher-than-expected inflation could potentially strengthen the US dollar. Despite the elevated crude oil prices, the US Dollar Index remained flat at 99.855 points at the close. The local currency also gained against a basket of major currencies, rising against the Japanese yen, euro, British pound, Singapore dollar, Philippine peso, Indonesian rupiah, and Thai baht.