Kuala lumpur: The ringgit ended lower against the US dollar on Tuesday as investors remained cautious ahead of the release of the US inflation data for June, amid persistent geopolitical tensions in West Asia. At the close of trading at 6 pm, the ringgit weakened to 4.0760/0800 against the greenback, down from Monday's close of 4.0680/0730.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid stated that the United States is set to release its June Consumer Price Index (CPI) data later in the evening. He highlighted that consensus estimates suggest a moderation in the US headline inflation for June to 3.8 percent year-on-year from 4.2 percent in the previous month.
Dr. Mohd Afzanizam further noted that the consensus forecast indicates a 2.8 percent increase in the core CPI, following a 2.9 percent rise previously. Despite the anticipated moderation in June CPI, uncertainties surrounding shipping traffic through the Strait of Hormuz could sustain elevated crude oil prices, potentially leading to a renewed acceleration in inflation.
He emphasized that heightened geopolitical tensions in West Asia and possible disruptions to vessel traffic through the Strait of Hormuz would continue to keep traders' risk appetite in check. Consequently, the ringgit traded mostly lower against a basket of major currencies.
The ringgit weakened against the Japanese yen to 2.5131/5157 from 2.5110/5142 on Monday and declined versus the British pound to 5.4533/4586 from 5.4475/4542. However, the local currency strengthened against the euro to 4.6470/6516 from 4.6501/6558 previously.
In regional trading, the ringgit exhibited a mixed performance. It eased against the Singapore dollar to 3.1533/1567 from 3.1489/1530 and depreciated against the Indonesian rupiah to 225.3/225.6 from 224.6/225.0. The local currency strengthened against the Thai baht to 12.1556/1722 from 12.1953/2151 and remained almost flat vis-a-vis the Philippine peso at 6.60/6.61 compared with 6.60/6.62 previously.