Kuala lumpur: The ringgit closed marginally higher against the US dollar on Thursday despite elevated crude oil prices and expectations of a possible US interest rate hike, as investors looked ahead to the release of US consumer price index (CPI) data on Friday. At 6 pm, the local currency appreciated to 4.0630/0670 against the greenback from Wednesday's close of 4.0670/0720.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that Brent crude was hovering around US$101 per barrel, which could bolster the case for a rate hike at the upcoming Federal Open Market Committee meeting. Despite this, the ringgit performed favourably against the US dollar. However, it remains uncertain whether this appreciation can be sustained in the near term.

Mohd Afzanizam emphasized that the US inflation reading, due on Friday, would be closely monitored for clues on the Federal Reserve's policy trajectory, which could influence the ringgit's near-term direction. At the close, the ringgit traded mostly higher against a basket of major currencies.

The local currency strengthened slightly against the euro to 4.7269/7315 from Wednesday's 4.7275/7333 and appreciated against the Japanese yen to 2.6431/6459 from 2.6474/6509. It remained relatively stable against the British pound, trading at 5.5046/5100 compared to 5.5043/5110 previously.

Additionally, the ringgit showed improved performance against ASEAN currencies. It strengthened against the Singapore dollar to 3.2113/2148 from 3.2150/2192, appreciated against the Thai baht to 12.3331/3497 from 12.3579/3788, rose against the Indonesian rupiah to 231.5/231.8 from 232.2/232.6, and improved against the Philippine peso to 6.49/6.50 from 6.50/6.52 at the previous day's close.