Kuala lumpur: The ringgit closed higher against most major currencies, but eased versus the greenback amid expectations that firmer United States inflation could reinforce the US Federal Reserve's restrictive monetary policy stance, thereby supporting demand for the US dollar. At 6 pm, the ringgit eased against the US dollar to 3.9320/9360 from 3.9220/9260 at Monday's close.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid highlighted that tonight's US Consumer Price Index (CPI) data would be closely watched by the market, with consensus estimates in headline inflation at 3.7 percent in April from 3.3 percent in the previous month. He stated that if the inflation data meets these expectations, the US Federal Reserve is likely to maintain its restrictive policy stance, which would support the US dollar.

Mohd Afzanizam also commented that the Fed may keep interest rates steady while the likelihood of an interest rate cut this year would remain low. He further noted that the ringgit is expected to remain in sideways trading mode in the near term as geopolitical risks remain elevated. A high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping is set to take place on May 14-15, 2026.

At the close, the ringgit traded mostly higher against a basket of major currencies. It appreciated against the Japanese yen to 2.4952/4979 from 2.4955/4983 and strengthened versus the British pound to 5.3231/3286 from 5.3331/3383. However, it eased against the euro to 4.6189/6236 from 4.6150/6197 at Monday's close.

The local currency showed a mixed performance against regional peers. It gained against the Indonesian rupiah to 224.3/224.6 from 225.2/225.5 and advanced against the Philippine peso to 6.39/6.41 from 6.41/6.42 previously. Conversely, it eased against the Singapore dollar to 3.0888/0922 from 3.0887/0921 and slid versus the Thai baht to 12.1276/1455 from 12.0900/1083.