Kuala lumpur: The ringgit closed marginally higher against the US dollar on Thursday as market participants awaited the release of the US consumer price index (CPI) report later tonight. By 6 pm, the ringgit strengthened to 4.0840/0880 against the US dollar, compared to yesterday's closing rate of 4.0855/0940, after opening at the 4.07 level earlier in the day.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid indicated that the US November CPI is projected to increase by 3.1 percent from 3.0 percent in September, based on consensus estimates. The core CPI is anticipated to hold steady at 3.0 percent. The anticipated rise in inflation is attributed to the effects of higher US import tariffs, which could influence market perceptions of the US Federal Reserve's future interest rate decisions.

Dr Mohd Afzanizam noted that a higher inflation rate could lead to a continuation of restrictive monetary policy, potentially supporting the US dollar. This sentiment was reflected in the US Dollar Index (DXY), which rose by 0.09 percent to 98.457 points as market participants awaited the CPI report.

Despite the ringgit's gains against the US dollar, it traded mostly lower against a basket of major currencies. It weakened against the British pound, falling to 5.4513/4567 from 5.4439/4553, and edged down against the euro to 4.7869/7915 from 4.7866/7965. However, it rose against the Japanese yen, reaching 2.6188/6217 from 2.6267/6321.

The ringgit also showed mixed performance against ASEAN currencies. It depreciated against the Singapore dollar, slipping to 3.1620/1653 from 3.1614/1682, and weakened versus the Thai baht to 12.9750/9935 from 12.9657/9989. Against the Philippine peso, it dipped to 6.97/6.98 from 6.96/6.97, but improved against the Indonesian rupiah, climbing to 244.2/244.5 from 244.7/245.3 previously.