At 9.03am, the local currency slipped to 4.0680/0730 against the US dollar from 4.0550/0600 at Thursday’s close.

Axi chief global market strategist Stephen Innes said other emerging currencies were also reeling after US bonds broke above the 1.5% perceived speed limit.

“But the oil prices which rose higher by over 4% after the Organisation of the Petroleum Exporting Countries held production in check is a mitigating factor and could hold the local note’s losses in check,” he told Bernama.

At the time of writing, Brent crude rose 0.19% to US$66.87 per barrel.

Meanwhile, commenting on Bank Negara Malaysia’s (BNM) move to maintain the overnight policy rate at 1.75%, Innes said that the central bank understood when it comes to central bank policy, the US Federal Reserve (US Fed) is the quintessential “central bank of the world”.

“Since the US Fed’s next policy move is widely telegraphed higher like most central banks, the BNM didn’t want to buck the trend to keep the ringgit trading on an even keel, as a steady currency encourages capital inflows. I view the no hike as natural for the ringgit,” he added.

Meanwhile, the ringgit was traded mostly higher against other major currencies, except versus the British pound where it eased to 5.6472/6550 from 5.6470/6556 yesterday.

The local note appreciated against the Singapore dollar to 3.0397/0441 from 3.0416/0460 on Thursday, improved against the euro to 4.8653/8717 from 4.8786/8854 yesterday and increased vis-a-vis the Japanese yen to 3.7698/7755 from 3.7774/7827 previously.