KUALA LUMPUR: The ringgit closed lower against the U.S. dollar for the fourth consecutive day on Thursday following the release of the U.S. Consumer Price Index (CPI) data, which showed the largest increase in seven months, although it aligned with forecasts. At 6 p.m., the local currency depreciated to 4.4350/4395 against the U.S. dollar, compared to the previous day’s close of 4.4300/4355.

According to BERNAMA News Agency, the November U.S. CPI rose by 2.7 percent, exceeding the 2.6 percent increase recorded in the previous month. Meanwhile, the Core CPI held steady at 3.3 percent for the third consecutive month, unchanged from August’s 3.2 percent, indicating a persistent U.S. inflation rate. Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, commented that the stable inflation rate might prompt the U.S. Federal Reserve to reconsider its monetary easing strategy next year. “This could mean fewer rate cuts or perhaps no rate cuts at all. It’s very dollar-positive now, and there
fore the ringgit could remain range-bound,” he stated.

The ringgit also experienced declines against other major currencies. It weakened against the British pound, falling to 5.6591/6648 from 5.6389/6459, decreased against the euro to 4.6612/6659 from 4.6515/6573, and slipped against the Japanese yen to 2.9074/9106 from 2.9013/9051 at Wednesday’s close.

In the ASEAN currency market, the ringgit generally traded lower. It narrowed against the Singapore dollar to 3.3008/3044 from 3.2937/2980 on Wednesday, declined versus the Thai baht to 13.1058/1261 from 13.0640/0875, and fell against the Philippine peso to 7.61/7.62 from 7.59/7.61 previously. However, the ringgit edged up against the Indonesian rupiah to 278.1/278.5 from 278.2/278.7 earlier.