The local currency began the week on a low note as the greenback continued to benefit from the better than expected economic reading of the Federal Reserve’s decision to raise interest rates.

At 10.39am, the local currency fell to 4.5960/4.5980 against the greenback from last Friday’s 4.5775/4.5800.

The ringgit opened at 4.5910/4.5950 against the dollar today.

Bank Islam Bhd chief economist Firdaos Rosli said the US dollar index emerged stronger, hitting 113.19, on expectations of more aggressive tightening as flagged by the Fed during its recent September meeting.

“As such, the local note breached the 4.57 level on the back of the strengthening greenback following the latest move by the US central bank to hike the interest rate by 75 basis points, lifting the fractional flow reserve target rate from the 2.25% to 2.5% range to the 3% to 3.25% range,” he told Bernama.

He also said that the ringgit would likely continue its downward trend versus the US dollar, ranging from RM4.58 to RM4.61 in the week, driven by sentiments rather than fundamentals.

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

The local note strengthened versus the Singapore dollar to 3.2057/3.2073 from 3.2130/3.2152 at last Friday’s close, appreciated against the British pound to 4.8580/4.8601 from 5.0957/5.0985, and rose vis-a-vis the euro to 4.4393/4.4412 from 4.4686/4.4710 previously.

It also performed better against the Japanese yen at 3.1959/3.1975 from 3.2091/3.2113 previously.