Ringgit Falls as Oil Prices Rise, Market Anticipates Fed Rate Hike
The Malaysian ringgit declined against several major currencies on Tuesday due to higher crude oil prices and cautious sentiment ahead of the US Federal Reserve's next policy decision. At 6pm, the local currency traded at 4.0605/0640 against the US dollar from Monday's close of 4.0440/0485.
According to Dr Mohd Afzanizam Abdul Rashid, Bank Muamalat Malaysia Bhd chief economist, elevated crude oil prices could strengthen the case for a Fed rate hike next week. He noted that market sentiment was anxious about the Fed's next move in the near term.
The ringgit also weakened against other major currencies, including the euro, British pound, and Japanese yen. It slipped to 4.7151/7191 against the euro from Monday's 4.6991/7044 and declined to 2.6374/6398 against the Japanese yen from 2.6173/6204.