PETALING JAYA: The ringgit fell against the United States dollar at yesterday’s close as the greenback continued strengthening after the US Federal Reserve (Fed) hinted at another interest rate hike this year.

       At 6pm, the local currency stood at 4.2160/2190 versus the greenback from 4.2025/2060 at Monday’s close.

       “Clearly, the recent statements by the Fed officials have contributed to the strong US dollar.

       “In light of the ongoing military conflict which has significant impact on rising commodity prices, it would actually help to bolster the case for a higher US Fed fund rate,” Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said.

       He said for now, investors were uneasy over the monetary policies in the developed markets as liquidity conditions may not be so abundant as before, given that these central banks are on the cusp of cutting down their asset purchases which had been the primary drivers for higher equity prices during the pandemic era in the past two years.

       At the close, the ringgit was traded mixed against a basket of currencies. — Bernama