KUALA LUMPUR: The ringgit closed higher against most major currencies, but eased versus the greenback amid expectations that firmer US inflation could reinforce the US Federal Reserve’s (Fed) restrictive monetary policy stance, thereby supporting demand for the US dollar.
At 6pm, the ringgit eased against the US dollar to 3.9320/9360 from 3.9220/9260 at Monday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the market will closely watch the US consumer price index data, with consensus estimates in headline inflation at 3.7% in April from 3.3% in the previous month.
“If that is the case, the Fed is likely to maintain its restrictive policy stance, which would support the US dollar,” he told Bernama. He said the ringgit is expected to remain sideways in the near term as geopolitical risks stay elevated.
