At 9.19am, the local note stood at 4.4050/4080 versus the greenback from yesterday’s close of 4.3960/3975.

The ringgit hit a record low on March 23, 2020 when it reached RM4.447.

Bank Islam Malaysia chief economist Afzanizam Abdul Rashid said this is a reflection on heightened economic uncertainties which in the current context is about the prospect of higher interest rate in the US and inflation outlook.

“Higher inflation rate is taking a toll on the consumer sector as rising costs are affecting profit margins.

“The Fed is also adamant with their rate hike campaign which could possibly stoke slower economic activities in the future,” he told Bernama.

On Tuesday, Fed chair Jerome Powell said the Fed would keep raising rates until inflation comes down.

Afzanizam said major central banks are also likely to tighten their grip on monetary policy as inflation seems to be pervasive.

“The major central banks are really in a tough spot as they need to weigh between rising inflationary pressures and ensuring economic growth remains robust,” he said.

On another note, he said the export ban of agrofood-related products is expected to amplify the extent of inflationary pressures.

Hence, foreign exchange players will continue to stick with the safe-haven currency.

The ringgit, however, traded mostly higher against a basket of major currencies.

It appreciated against the Singapore dollar to 3.1693/1717 from yesterday’s close of 3.1713/1728, increased vis-a-vis the euro to 4.6200/6231 from 4.6268/6284, and strengthened versus the British pound to 5.4406/4443 from 5.4554/4573.

But it slid versus the Japanese yen to 3.4269/4295 from 3.4041/4055.