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THE ringgit opened firmer against the US dollar and most major currencies on Tuesday as investors turned their attention to crucial American inflation data that could shape expectations over future United States interest rate policy.
Currency traders are closely watching the release of April’s US Consumer Price Index (CPI) figures later tonight, with markets assessing whether persistent inflationary pressures will reinforce the Federal Reserve’s cautious stance on monetary easing.
At the opening of trade, the Malaysian currency strengthened slightly to 3.9200/9300 against the US dollar from Monday’s closing level of 3.9220/9260.
Bank Muamalat Malaysia Berhad’s Chief Economist Dr Mohd Afzanizam Abdul Rashid said expectations of firmer US inflation could reduce the likelihood of any near-term Federal Reserve interest rate cuts.
He noted that headline inflation in the United States for April was expected to rise to 3.7 per cent from 3.3 per cent in March, while core inflation was forecast to increase to 2.7 per cent from 2.6 per cent previously.
“Hence, the Fed may keep the rate steady while the odds for an interest rate cut this year would stay low.
“As such, the ringgit is expected to remain in sideways trading mode in the near term as the geopolitical risks remain heightened with a high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping set to take place this week,” he told Bernama.
Market sentiment also remained cautious ahead of the closely watched Trump-Xi summit, with investors monitoring potential developments involving trade tensions, tariffs and broader geopolitical risks.
Against a basket of major currencies, the ringgit traded mostly stronger during early trading.
The local currency appreciated against the Japanese yen to 2.4925/4990 from 2.4955/4983 previously, while also strengthening against the British pound to 5.3312/3448 from 5.3331/3383.
However, it slipped marginally against the euro to 4.6162/6280 compared with 4.6150/6197 at Monday’s close.
The ringgit’s performance against regional currencies was mixed.
It edged higher against the Singapore dollar at 3.0883/0964 from 3.0887/0921 and strengthened against the Indonesian rupiah to 225.1/225.7 from 225.2/225.5 previously.
The local unit was little changed against the Philippine peso at 6.41/6.43, while weakening against the Thai baht to 12.1374/1759 from 12.0900/1083.
Analysts said investors were expected to remain cautious in the near term as global markets continued to navigate uncertainty surrounding inflation, interest rate expectations and escalating geopolitical tensions. - May 12, 2026
Ringgit, US Dollar, Federal Reserve, Inflation, Consumer Price Index, Mohd Afzanizam Abdul Rashid, Currency Markets, Donald Trump, Xi Jinping, Economy, Global Markets
