The Malaysian ringgit ended higher against most major and ASEAN currencies on Monday, despite a slight decline against the US dollar. At 6 p.m. local time, the ringgit traded at 4.0735/0770 against the greenback, down from last Friday’s close of 4.0685/0725.

This currency movement occurred in the context of rising Brent crude oil prices, which have reached approximately US$107 per barrel. The increase in oil prices has contributed to inflationary pressures as investors and markets prepare for upcoming monetary policy decisions by the US Federal Open Market Committee (FOMC) and the Bank of Japan (BoJ).

Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the elevated crude prices support expectations of further interest rate hikes by the Federal Reserve. He added that this inflationary environment could reinforce the case for tightening monetary policy, which in turn may lead to cautious sentiment toward Asian currencies, including the ringgit, in the near term.

Against other currencies, the ringgit showed gains. It strengthened against the euro, trading at 4.7008/7049 from 4.7178/7225 recorded last Friday, and appreciated versus the Japanese yen to 2.6355/6380 from 2.6400/6428. These shifts reflect broader market dynamics as investors weigh the implications of central bank meetings scheduled for this week.

Overall, the ringgit's performance highlights the complex interplay between commodity prices and global monetary policy expectations, with the market maintaining vigilance amid potential interest rate adjustments by major central banks.