At 9am, the local currency was traded at 4.1820/1860 versus the greenback from Monday’s close of 4.1835/1850.

At press time, Brent crude oil stood at US$92.65 per barrel, a decrease of 0.04%.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said although crude oil has been hovering above US$90 per barrel, it supports the ringgit at the moment.

“Higher crude oil prices would help improve fiscal space for the Malaysian economy that could then support growth.

“In that regard, the rationale for a stronger ringgit is fairly clear,” he continued.

Afzanizam said the Consumer Price Index (CPI), which is the key data that will be released this week, is projected to remain over 7% in January.

“The rate hike in the US is almost a done a deal, and the next question is the quantum for the hike.”

As a result, he believes the ringgit will remain around RM4.18 against the greenback in the immediate term.

Investors will also be looking for Malaysia’s final quarter GDP on Friday, he adds, “The number could come in positive after having a negative print in the prior quarter following the reopening of the economy in October.”

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

It slipped against the Singapore dollar to 3.1125/1157 from Monday’s close of 3.1102/1115, fell against the British pound to 5.6603/6658 from 5.6536/6556, and depreciated versus the euro to 4.7850/7896 compared with 4.7780/7797 previously.

The ringgit, however, appreciated against the Japanese yen to 3.6274/6312 from 3.6369/6385.