At 6pm, the local currency weakened to 4.4650/4.4670 versus the greenback from yesterday’s close of 4.4570/4.4595.

The markets have mixed views on the Fed’s pace of rate hikes over the next few months.

“While some analysts are projecting a sharp interest rate hike, others believe that easing inflation in July has reduced expectations for another big rate increase,” a trader said.

Market players are also awaiting the upcoming release of the US building permits data, an indicator of the health of the US real estate sector, after China’s surprise interest rate cut added to concerns about slowing growth in the global economy amid its weaker industrial production and retail sales numbers as well as deepening property crisis.

The trader said declining oil prices also contributed to the weakness in the domestic currency.

Brent crude eased 80 cents to US$94.31 per barrel and the West Texas Intermediate crude dropped 40 cents to US$89.01 per barrel.

Nevertheless, the ringgit traded higher against a basket of major currencies.

It rose marginally against the Singapore dollar at 3.2346/3.2365 from 3.2379/3.2402 at yesterday’s close and appreciated vis-a-vis the Japanese yen at 3.3284/3.3301 from 3.3393/3.3415 previously.

The local unit gained versus the British pound to 5.3686/5.3710 from 5.3796/5.3826 yesterday and increased against the euro at 4.5258/4.5279 from 4.5488/4.5514 at yesterday’s close.