Ringgit Strengthens Against Most Currencies Amid Pre-Inflation Data Jitters

The Malaysian ringgit strengthened against most major currencies on Tuesday but weakened slightly against the US dollar ahead of key inflation data from the US.

According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, the upcoming US Consumer Price Index (CPI) data is an important indicator for markets to gauge the direction of US interest rates.

A robust labour market and demand-driven inflation might not be the main source of price pressures, Dr. Afzanizam said, suggesting that monetary tightening may not be the appropriate policy measure to bring US inflation down towards the 2% target.