Ringgit ends marginally lower against US dollar ahead of US inflation data

The Malaysian ringgit ended the trading day marginally lower against the US dollar on Tuesday, according to an analyst. At 6pm, the ringgit fell to 4.0835/0880 against the greenback, from Monday's closing rate of 4.0820/0865. TA Securities chief economist Shazma Juliana Abu Bakar attributed this slight decline to investors' cautious stance ahead of the United States inflation data scheduled for the following day.

The data could potentially impact expectations for the Federal Reserve's monetary policy decisions, thereby affecting the ringgit's short-term fluctuations. However, Abu Bakar noted that the ringgit is expected to maintain relative stability throughout the week, bolstered by positive investor sentiment following Malaysia's 2027 Budget and the government's persistent commitment to fiscal consolidation.

Still, she warned that geopolitical tensions in West Asia and elevated Brent crude oil prices could introduce external uncertainties, potentially sustaining demand for the US dollar as a safe-haven currency. At the close, the ringgit traded weaker against a basket of major currencies, including the Japanese yen, British pound, euro, Indonesian rupiah, Singapore dollar, and Thai baht.