Kuala Lampur:The ringgit ended slightly higher against the US dollar on Wednesday, buoyed by expectations that the US Federal Reserve might refrain from increasing interest rates next month due to weaker-than-expected consumer sentiment data.

According to BERNAMA News Agency, the ringgit advanced to 4.0785/0820 against the greenback from Tuesday's close of 4.0790/0850. Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the ringgit, along with other Asian currencies, gained momentum as recent US data suggested the Fed might skip a rate hike. The weaker consumer sentiment could impact household spending, which constitutes about two-thirds of the US economy.

Market players are closely observing the upcoming ADP employment and Personal Consumption Expenditures (PCE) reports. Consensus estimates suggest that ADP employment is expected to rise to 73,000 in September from 38,000 in the previous month, while PCE inflation is anticipated to remain at 3.7 percent in August. If weak job numbers and a lower inflation rate continue, the US dollar might face further corrections in the near term, Dr. Mohd Afzanizam commented.

Despite the gains against the US dollar, the ringgit traded lower against a basket of major currencies. It fell against the euro to 4.6324/6363 from 4.6235/6303, retreated against the British pound to 5.4162/4209 from 5.3937/4016, and declined against the Japanese yen to 2.5969/5993 from 2.5869/5909.

In relation to ASEAN currencies, the ringgit decreased against the Singapore dollar to 3.1943/1973 from 3.1885/1934, eased against the Thai baht to 12.1521/1666 from 12.1402/1632, and dipped against the Indonesian rupiah to 227.9/228.2 from 226.8/227.2. The ringgit, however, was slightly higher against the Philippine peso at 6.51/6.52 from 6.52/6.53.