Ringgit eases against US dollar ahead of US inflation figures

Kuala Lumpur: The Malaysian ringgit slipped slightly against the US dollar on Tuesday as traders remained cautious ahead of the US inflation figures due for release the following day, according to an analyst. By 6 pm, the ringgit had dipped to 4.0835/4.0880 per US dollar, down from last Monday's closing rate of 4.0820/4.0865. TA Securities chief economist Shazma Juliana Abu Bakar explained that the forthcoming data could impact expectations surrounding the Federal Reserve's monetary policy decisions, thereby affecting the ringgit's short-term performance.

She noted that the local currency is anticipated to maintain a relatively stable position throughout the week, bolstered by the prevailing positive investor sentiment resulting from Budget 2027 and the government's ongoing commitment to fiscal consolidation. Abu Bakar, however, cautioned that rising geopolitical tensions in the Middle East and higher Brent crude oil prices could increase external uncertainties and keep demand for the US dollar as a safe-haven asset.

At the close of trading, the ringgit was seen trading lower against a range of major currencies, including the Japanese yen, British pound, euro, Indonesian rupiah, Philippine peso, Singapore dollar, and Thai baht.