Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said tonight’s US CPI data would be closely watched by the market, with consensus estimates in headline inflation at 3.7% in April from 3.3% in the previous month.

“If that is the case, the US Federal Reserve is likely to maintain its restrictive policy stance, which would support the US dollar,” he told Bernama.

He said the Fed may keep interest rates steady while the likelihood of an interest rate cut this year would remain low.

Afzanizam also said the ringgit is expected to remain in sideways trading mode in the near-term as geopolitical risks remain elevated, with a high-stake meeting between US president Donald Trump and Chinese president Xi Jinping set to take place from May 14-15, 2026.

At the close, the ringgit traded mostly higher against a basket of major currencies.

At 6pm, the ringgit eased against the US dollar to 3.9320/3.9360 from 3.9220/3.9260 at Monday’s close.

It appreciated against the Japanese yen to 2.4952/2.4979 from 2.4955/2.4983 and strengthened versus the British pound to 5.3231/5.3286 from 5.3331/5.3383, but eased against the euro to 4.6189/4.6236 from 4.6150/4.6197 at Monday’s close.

The local currency traded mixed against regional peers.

It gained against the Indonesian rupiah to 224.3/224.6 from 225.2/225.5, and advanced against the Philippine peso to 6.39/6.41 from 6.41/6.42 previously.

However, it eased against the Singapore dollar to 3.0888/3.0922 from 3.0887/3.0921 and slid versus the Thai baht to 12.1276/12.1455 from 12.0900/12.1083.