Baku:The ringgit closed higher against the US dollar on Wednesday, buoyed by improved investor risk appetite ahead of the release of US inflation data. This optimism was further bolstered by last week's announcement of Malaysia's Budget 2027.

According to BERNAMA News Agency, at 6 pm, the ringgit appreciated to 4.0805/0850 against the dollar, compared to Tuesday's close of 4.0835/0880.

Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, highlighted that market sentiment is primarily focused on the upcoming US Consumer Price Index (CPI) data. He noted that the US inflation rate is anticipated to rise to 3.6 percent for September, based on consensus estimates. This data is crucial as it will influence the Federal Open Market Committee's (FOMC) decisions later this month.

Despite the gain against the US dollar, the ringgit experienced mixed performance against other major currencies. It strengthened against the Japanese yen to 2.5751/5781 from the previous 2.5833/5864, but weakened against the British pound and the euro, closing at 5.4132/4192 and 4.5673/5723, respectively.

In comparison to its ASEAN counterparts, the ringgit showed gains against the Indonesian rupiah, closing at 227.9/228.2, and remained relatively stable against the Philippine peso at 6.50/6.51. It also edged up against the Singapore dollar to 3.1829/1267 and appreciated against the Thai baht to 12.1498/1672.