At 6pm, the local note depreciated by 35 basis points (bps) to 4.7460/4.7495 against the greenback from yesterday’s close of 4.7425/4.7460.

SPI Asset Management managing director Stephen Innes said the US dollar continued to strengthen after the US Federal Reserve (Fed) signalled the US central bank’s stance to continue increasing interest rates going forward.

“As we suggested yesterday, the overnight policy rate (OPR) hike by Bank Negara Malaysia (BNM) is only 25bps compared to the Fed’s hiking of 75bps, so from a strictly monetary policy perspective, the US dollar is still in the driver’s seat,” he told Bernama.

“In unambiguous contrast to the Fed, BNM threw in the towel on over-hawkishness weighing near-term inflation risks versus slowing activity, and only raised (the rate by) 25bps for fear of driving a deep recession,” he added.

Innes said there is a significant element of political risk weighing on the ringgit ahead of the 15th general election, which is keeping foreign investors sidelined, hence the demand for the local note remains muted.

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

It weakened against the euro to 4.6383/4.6417 from 4.6258/4.6292 at yesterday’s close, depreciated against the Singapore dollar to 3.3517/3.3546 from 3.3353/3.3383 and decreased vis-a-vis the Japanese yen to 3.2111/3.2137 from 3.1992/3.2018 yesterday.

The local note, however, appreciated against the British pound to 5.3231/5.3270 from 5.3372/5.3411 previously.