Ringgit closes lower against US Dollar

KUALA LUMPUR: The ringgit closed lower in tandem with most Asian emerging currencies as the US dollar was holding steady ahead of the release of the US inflation data later today which will offer a guide on the Federal Reserve's (Fed) action.

At 6pm, the local unit was quoted at 4.2040/2070 against the greenback from Wednesday's close of 4.1900/9400.

A dealer said the inflation data would be important to the Fed as it considered the timing of its next rate rise.

Although market expectations for another US rate increase from the Fed have almost dissipated despite a strong rise in August inflation but some are seeing the greenback going higher in the near term regardless of what the Fed does, he said.

Meanwhile, the ringgit is expected to remain supported and further gains on firm oil prices, he added.

Against other major currencies, the ringgit was traded mixed.

The ringgit slid against the Singapore dollar to 3.1129/1165 from 3.1127/1166 on Wednesday and vis-a-vis the pound, it went up to 5.5510/5553 from 5.5580/5650 yesterday.

The local note slipped versus the yen to 3.8069/8100 from 3.8063/8106 on Wednesday and was better against the euro at 5.0007/0051 versus 5.0158/0219 yesterday. — Bernama