Ringgit Weakens Against US Dollar Amid Oil Price Hikes

The Malaysian ringgit closed lower against the US dollar on Tuesday due to higher crude oil prices and cautious sentiment ahead of the Federal Reserve's next policy decision. According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, elevated crude oil prices could strengthen the case for a Fed rate hike next week.

The ringgit eased to 4.0605/0640 against the greenback from Monday's close of 4.0440/0485. It was also lower against other major currencies such as the euro, British pound, and Japanese yen.

Dr Mohd Afzanizam noted that market sentiment was anxious about the Fed's next move in the near term, with expectations of a Bank of Japan rate hike next week gathering further momentum.