The conflict, coupled with doubts that the US Federal Reserve will cut interest rates, added pressure on the local currency today.

Dealers have also attributed the poor performance to a lack of catalysts.

The ringgit began the day at 4.7075/4.7110 against the greenback from yesterday’s close of 4.6925/4.6965.

Bank Muamalat Malaysia chief economist Afzanizam Rashid said the risk-off mode will continue to prevail, leading to a higher demand for the US dollar.

He told Bernama that tension in the Middle East, especially in the Red Sea area, could disrupt global trade, resulting in demand for the US dollar.

Meanwhile, data points in focus this week would be the release of China’s fourth quarter 2023 economic growth and US December’s retail sales.

“At the current juncture, the US dollar/ringgit will continue to flirt around the RM4.70 level. The current support and resistant level stands at RM4.6611 and RM4.7958 respectively,” Afzanizam said.

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

It weakened versus the euro to 5.1189/5.1227 from 5.1073/5.1117 at yesterday’s close, eased against the British pound to 5.9489/5.9533 from 5.9299/5.9350 yesterday, but went up against the Japanese yen to 3.1948/3.1974 from 3.2013/3.2043 previously.

The ringgit was mostly lower against Asean currencies.

The local note fell against the Thai baht to 13.2710/13.2858 from 13.2579/13.2748 yesterday, decreased against the Singapore dollar to 3.5063/3.5091 from 3.5003/3.5038, depreciated versus the Indonesian rupiah to 301.9/302.2 from 300.9/301.3, and was almost flat vis-à-vis the Philippine peso at 8.40/8.41 from 8.40/8.42.