Ringgit climbs vs US dollar as markets await inflation data

The Malaysian ringgit finished higher against the US dollar on Wednesday, with traders positioning cautiously ahead of the release of the US Consumer Price Index (CPI) report for July later that night.

At 6 pm, the ringgit strengthened to 4.0835/0875 versus the greenback, up from Tuesday's close of 4.0905/0940.

Contents

01

What drove the move

02

What the market expected

03

Why it matters

What drove the move

The July CPI report was widely expected to offer further clues on the direction of interest rates in the United States, which in turn influences demand for the US dollar against regional currencies.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was well supported against the US dollar during the session, while other Asian currencies were generally mixed against the greenback.

What the market expected

Afzanizam told Bernama that market participants were guarded ahead of the US CPI release, which was scheduled for that night.

Consensus estimates showed US CPI inflation could come in at 3.4 per cent in July, compared with 3.5 per cent for June.

Why it matters

A softer inflation reading could reinforce expectations that the US Federal Reserve may ease interest rates, which tends to reduce the appeal of holding US dollars and can support currencies such as the ringgit.

The report was published by The Star on Wednesday, Aug 12, 2026, at 7.15pm, with New Straits Times also carrying coverage of the ringgit's firmer close ahead of the US inflation data.