At 9am, the local currency slid to 4.4970/4.5010 against the greenback from 4.4965/4.4990 at Friday’s close.

Kenanga Investment Bank Bhd (Kenanga) noted that despite Bank Negara Malaysia’s back-to-back overnight policy rate hike and the European Central Bank’s (ECB) unprecedented 75-basis-point interest rate increase, the ringgit weakened against the strengthening US dollar.

The dollar/ringgit pair breached the psychological level of 4.50 for the first time in more than 24 years on Sept 7 as the greenback index soared to above the 110.0 level due to US Federal Reserve chair Jerome Powell’s hawkish comments.

The local note was also pressured by China’s weak trade figures, it said.

However, the research house said the ringgit might reverse some of its losses against the US dollar this week due to the expectation of a weaker US inflation reading in August — widely estimated to be at 8% year-on-year — coupled with the ECB’s ongoing hawkish tone.

It added that investors’ sentiments are also improving as seen in the decline in the Chicago Board Options Exchange volatility index.

Additionally, the local note might also benefit from a potential improvement in domestic retail sales and China’s macroeconomic readings.

“The ringgit may appreciate marginally by 0.01% to 4.497 against the US dollar,” Kenanga said, adding that it might recoup some of its losses amid a potential recovery in the global risk appetite.

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

The local unit appreciated against the Singapore dollar to 3.2140/3.2173 from 3.2189/3.2209 last Friday and strengthened versus the Japanese yen to 3.1509/3.1539 from 3.1670/3.1690 as the safe-haven currency lost its attractiveness amidst expectations that the Bank of Japan’s ultra-loose monetary policy would continue.

The ringgit also rose against the British pound to 5.2215/5.2261 from 5.2249/5.2278 and increased vis-a-vis the euro to 4.5289/4.5330 from 4.5361/4.5386 previously.