There is speculation that the Federal Open Market Committee of the US Federal Reserve could hike the rate by 0.75 percentage points when it meets again on July 26 and 27.

At the close of trading at 6pm, the local currency slipped to 4.4520/4.4550 versus the greenback from Friday’s close of 4.4480/4.4505.

SPI Asset Management managing partner Stephen Innes said there was a further downside risk for the currency market due to reports of new Covid-19 infections in China.

“The longer restrictions remain in place, the longer it will take for a consumer-driven recovery to take place. Hence, that could weigh on local currencies,” he said.

He added that some investors are concerned with the increase in infection of the Omicron variant across Asia especially as cases were much higher in Singapore.

The ringgit also traded lower against a basket of major currencies.

The local currency weakened against the Singapore dollar at 3.1884/3.1908 compared with 3.1688/3.1710 on Friday and depreciated versus the British pound to 5.3326/5.3362 from 5.2629/5.2658 previously.

It decreased vis-a-vis the euro to 4.5223/4.5254 from 4.4662/4.4687 on Friday and went down against the Japanese yen to 3.2203/3.2227 from 3.2048/3.20699.