Kuala Lumpur — The Malaysian ringgit ended lower against the US dollar yesterday, despite gaining against a basket of other major currencies. The local currency closed at 4.0830/4.0875 against the greenback at 6 p.m., weakening slightly from Wednesday’s close of 4.0785/4.0820.

The ringgit’s movement came amid continued strength in the US dollar, even as market expectations for a Federal Reserve interest rate hike diminished. The probability of an increase in US interest rates dropped to below 50% from over 70% previously, following the release of the latest personal consumption expenditure (PCE) inflation data, which came in lower than anticipated.

Bank Muamalat Malaysia Bhd’s chief economist, Mohd Afzanizam Abdul Rashid, noted that the ringgit traded within a narrow band of 4.0820 to 4.0875 on the day. He said, “Despite softer inflation numbers reducing the odds of a US rate hike, the US dollar remains well supported.” The US dollar index, which measures the currency against a basket of six major currencies, rose by 0.3% to 101.759 points.

The ringgit’s marginal dip against the dollar contrasts with its relatively firmer trend against other currencies, reflecting the broader influence of US monetary policy expectations on emerging market currencies. Investors remain cautious as they digest US economic data, weighing its implications for future Federal Reserve actions and global financial markets.