At 9am, the local currency was traded at 4.1795/1825 against the greenback from 4.1715/1740 at Monday’s close.

According to news reports, the rise in the US yields is an indication that the US dollar may extend its rally from last year, as markets anticipate the US Federal Reserve to begin a cycle of interest-rate hikes this year.

However, the ringgit’s losses were limited by the support of firmer oil prices.

Brent crude was trading 0.38% higher at US$79.38 per barrel at the time of writing.

On another note, Moody’s Analytics stated in its Asia Pacific Economic Preview report for the week of Jan 3-7, that Malaysia’s export sector outlook is likely to be positive in 2022, with trade poised to lead the country back to pre-pandemic growth in the middle of the year.

However, it said the Omicron variant and extreme weather may pose a risk to supply chains.

Meanwhile, the ringgit was traded mostly higher against a basket of other major currencies.

The local note gained versus the Singapore dollar to 3.0879/0904 from Monday’s close of 3.0917/0929 but marginally decreased against the Japanese yen to 3.6230/6259 from 3.6220/6245.

It appreciated vis-a-vis the British pound to 5.6331/6376 from 5.6414/6431 on Monday and strengthened against the euro to 4.7255/7282 from 4.7363/7396.