Ringgit Trades Mixed Ahead of Key US Inflation Data

The Malaysian ringgit traded mixed against major currencies on August 11, despite ending mostly higher against regional peers.

Ahead of key US inflation data due on Wednesday, the local currency slipped to 4.0905/0940 versus the US dollar from its previous close of 4.0885/0930.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid suggested that the upcoming Consumer Price Index (CPI) data would be a crucial indicator for markets to gauge the direction of US interest rates.

'As such, monetary tightening may not be the appropriate policy measure to bring inflation down towards the two per cent target,' he said.