The real test comes on Thursday when the US releases its consumer price index (CPI) data, according to SPI Asset Management managing director Stephen Innes.

At 6pm, the local note improved to 4.7385/4.7420 against the greenback from last Friday’s close of 4.7460/4.7495.

Innes said the US CPI would be the next marker for the federal open market committee on how high to take interest rates.

Another hefty increase in US interest rates will put more pressure on the ringgit.

Innes also said that Asia traders were looking for signs of a China reopening, and markets would position themselves for it by buying regional equities and the Chinese yuan.

“Eventually, this should feed through to the ringgit, but locally we need to clear the political risk around the general election. Then the local note should trade more closely to underlying moves in the Chinese yuan,” he told Bernama.

Meanwhile, the ringgit was traded lower against a basket of major currencies.

It depreciated against the Singapore dollar to 3.3731/3.3761 from 3.3517/3.3546 last Friday and decreased vis-a-vis the Japanese yen to 3.2303/3.2329 from 3.2111/3.2137 previously.

The local currency also weakened against the euro to 4.7323/4.7358 from 4.6383/4.6417 at Friday’s close and eased versus the British pound to 5.4227/5.4267 from 5.3231/5.3270.