Kuala lumpur: The ringgit closed higher on Tuesday against most major currencies but eased against the greenback ahead of the release of key US inflation data. At 6 pm, the ringgit edged down to 4.0905/0940 versus the US dollar from Monday's close of 4.0885/0930.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid highlighted the significance of the upcoming US Consumer Price Index (CPI) data, set to be released on Wednesday. This data is expected to serve as a crucial indicator for markets to assess the direction of US interest rates. He noted that the current US labor market appears less robust, implying that demand-driven inflation may not be the primary source of price pressures.

Dr. Mohd Afzanizam further explained that given these circumstances, monetary tightening might not be the appropriate policy measure to bring US inflation down towards its two percent target. At the close of trading, the local currency showed an upward trend against a basket of major currencies.

The ringgit strengthened against the Japanese yen, moving to 2.5680/5703 from 2.5736/5766 at Monday's close, and rose against the euro to 4.7188/7228 from 4.7247/7299. However, it slipped vis-a-vis the British pound to 5.5238/5285 from 5.5170/5231 previously.

The local currency also demonstrated gains against regional currencies. It climbed against the Singapore dollar to 3.1930/1962 from 3.1961/2002 on Monday and increased against the Thai baht to 12.3323/3481 from 12.3894/4079 previously. Additionally, the ringgit appreciated against the Philippine peso to 6.68/6.69 from 6.73/6.74, and against the Indonesian rupiah, it rose to 229.0/229.3 from 230.2/230.6.