Kuala Lumpur: The ringgit held steady at approximately the 4.50 level against the US dollar as financial markets awaited the release of the US Producer Price Index report. By the end of trading, the ringgit had increased slightly to 4.5035/5100 against the US dollar, compared to Monday’s close of 4.5080/5120.

According to BERNAMA News Agency, Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the US Dollar Index (DXY) decreased to 109.445 points. The decline may have been influenced by news concerning a gradual tariff hike proposed by US President-elect Donald Trump’s economic team, which appeared to ease market concerns slightly. Dr. Afzanizam mentioned that despite this development, market sentiments are likely to remain cautious. The US Federal Reserve is expected to maintain the Fed Fund Rate at the upcoming Federal Open Market Committee meeting on January 28-29, considering the continued resilience of the US economy.

At the close of trading, the ringgit showed a mixed performance against major currencies. It weakened against the euro, falling to 4.6201/6268 from the previous 4.5964/6004, and decreased in value against the British pound, moving to 5.4839/4918 from 5.4592/4640. However, the ringgit strengthened against the Japanese yen, reaching 2.8510/8553 compared to Monday’s 2.8706/8733.

In its performance against ASEAN currencies, the ringgit traded variably. It fell against the Thai baht, concluding at 12.9500/9739 from 12.9440/9618. The local currency remained largely unchanged against the Indonesian rupiah, trading at 276.7/277.3 compared to 276.8/277.2. Additionally, the ringgit depreciated against the Singapore dollar, closing at 3.2889/2939 from 3.2788/2822, while it remained stable against the Philippine peso at 7.68/7.70, similar to Monday’s 7.68/7.69.