KUALA LUMPUR, Aug 27 — The ringgit extended its loss to end lower against the greenback on Wednesday ahead of key US inflation data.

The US Personal Consumption Expenditures (PCE) inflation print will be released this Friday, which could surprise on the upside, said an analyst.

At 6pm, the local note slid to 4.2335/2365 versus the US dollar from yesterday’s close of 4.2160/2210.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that if the US inflation data this Friday surprised on the upside, it might compromise the possibility of an interest rate cut in September.  “Hence, that could contribute to the strength of the US dollar,” he told Bernama. 

Additionally, he said inflation could be elevated in the United States as it has doubled tariffs on many imports from India to 50 per cent.

Mohd Afzanizam noted that the US Dollar Index (DXY) was higher by 0.38 per cent to 98.603 points despite concerns over the independence of the US Federal Reserve. “It seems that the US dollar is gaining traction as market sentiments become increasingly pessimistic and traders are seeking refuge in the greenback,” he said.

At the close, the ringgit settled mostly lower against a basket of major currencies.

It rose versus the euro to 4.9058/9093 from 4.9087/9145 at Tuesday’s close, but fell vis-à-vis the Japanese yen to 2.8591/8611 from 2.8571/8607, and weakened against the British pound to 5.6890/6930 from 5.6827/6895.

It also traded mostly lower against other Asean currencies.

The local note weakened versus the Singapore dollar to 3.2843/2869 from 3.2786/2828 yesterday, declined against the Thai baht to 13.0330/0474 from 12.9707/9917, and slid against the Philippine peso to 7.40/7.41 from 7.38/7.40 previously.

The ringgit was flat vis-à-vis the Indonesian rupiah at 258.6/258.9 from 258.6/259.0 previously. — Bernama