Ringgit weakens against dollar, euro, pound and yen as elevated crude prices boost expectations of a Fed rate hike next week.
KUALA LUMPUR: The ringgit closed lower against the US dollar on Tuesday, weighed by higher crude oil prices and cautious sentiment ahead of the US Federal Reserve’s (Fed) next policy decision, an analyst said.
At 6 pm, the local currency eased to 4.0605/0640 against the greenback from Monday’s close of 4.0440/0485.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said elevated crude oil prices could strengthen the case for a Fed rate hike next week.
“Other Asian currencies were also mixed, with the (US) dollar-yen hovering at 153 yen as expectations of a Bank of Japan rate hike next week gathered further momentum.
“In a nutshell, market sentiment was anxious about the Fed’s next move in the near term,” he told Bernama.
At the close, the ringgit was lower against a basket of major currencies.
It slipped against the euro to 4.7151/7191 from Monday’s 4.6991/7044, weakened against the British pound to 5.4926/4974 from 5.4736/4796, and declined against the Japanese yen to 2.6374/6398 from 2.6173/6204.
The ringgit also traded lower against most regional currencies.
It inched down against the Philippine peso to 6.48/6.49 from 6.46/6.47 on Monday and declined against the Singapore dollar to 3.2073/2104 from 3.1943/1981.
It fell against the Thai baht to 12.3285/3447 from 12.3041/3231 and weakened against the Indonesian rupiah to 230.3/230.5 from 229.2/229.6 at the previous close.
