Ringgit dips on stubborn US inflation

SPI Asset Management's Innes has revised his forecast for the dollar-ringgit pair to 4.65 by year's end from 4.5, based on Fed rate cuts of 125 basis points.

PETALING JAYA: The uptick in US inflation data for January has strengthened the US dollar at the expense of other currencies including the ringgit, as traders dial back expectations of interest rate cuts by the Federal Reserve (Fed) this year.

The US consumer price index (CPI) report for January reported a reacceleration of consumer price growth with the main headline figure increasing at a faster pace than forecast by economists.