Kuala lumpur: The ringgit weakened against the US dollar at the close on Wednesday as investors, adopting a cautious stance, took profit following recent gains in anticipation of the impending US inflation reports this week.

According to BERNAMA News Agency, US producer price inflation data is set to be released later today, with the consumer price index report scheduled for Thursday. By 6 pm, the local currency had declined to 4.2185/2220 from Tuesday’s close of 4.2025/2080. Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted traders’ cautious approach towards the upcoming US inflation reports, despite the currently weaker American job market. ‘Consensus estimates foresee the headline Producer Price Index (PPI) maintaining at 3.3 percent in August, while the core PPI is expected to moderate to 3.5 percent from 3.7. Traders are concerned that the figures could exceed expectations, potentially influencing the US Federal Reserve’s decision next week,’ he explained to Bernama.

Stephen Innes, managing director of SPI Asset Management, remarked on the recent US nonfarm payrolls revision, which indicated slowed job growth. However, the US dollar found support from safe-haven demand following the Israeli strike against Hamas in Qatar. ‘Traders are adjusting their positions ahead of the US Consumer Price Index (CPI) release, which could increase US yields if inflation is higher than anticipated,’ he added.

At the close, the ringgit showed mixed performance against a basket of major currencies. It appreciated against the euro, reaching 4.9416/9457 from 4.9451/9516, and strengthened against the yen, rising to 2.8614/8639 from 2.8711/8751. However, it weakened against the pound, falling to 5.7127/7174 from 5.7095/7170 the previous day.

Additionally, the ringgit was generally weaker against ASEAN currencies. It edged down against the peso to 7.38/7.39 from 7.37/7.39 previously and depreciated against the Singapore dollar to 3.2883/2912 from 3.2824/2870. The local currency also declined against the baht to 13.2699/2872 from 13.2688/2925 and eased against the rupiah to 256.1/256.4 from 254.9/255.4.