Kuala lumpur: The ringgit and its regional counterparts continued to trade lower against the US dollar on Tuesday, as market sentiment remained fixated on the conflict in Iran and the ongoing global energy crisis. At 6 pm, the local currency fell to 4.0475/0520 against the greenback from Monday's close of 4.0280/0350.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid indicated that market sentiment remained cautious, with investors closely monitoring developments in the West Asia conflict while awaiting critical data releases, including the US ISM Index for the manufacturing and services sectors expected later this week. He noted the potential impact of high fuel prices on business sentiment in March.

Mohd Afzanizam highlighted that Bank Negara Malaysia (BNM) has updated its macroeconomic forecast, projecting the country's gross domestic product growth to be between four and five per cent this year. This forecast is a slight increase from the 4.0 to 4.5 per cent range presented when Budget 2026 was tabled in October last year. The inflation rate is expected to rise between 1.5 and 2.5 per cent, surpassing last year's inflation rate of 1.4 per cent. He emphasized that BNM perceives the Malaysian economy as better positioned to endure the economic challenges posed by the conflict in Iran.

At the day's close, the ringgit experienced declines against a basket of major currencies. It weakened against the British pound to 5.3484/3543 from 5.3311/3403 at the previous close, fell against the Japanese yen to 2.5351/5381 compared with 2.5237/5282 previously, and slipped against the euro to 4.6417/6468 from 4.6294/6374.

The local currency also traded lower or remained flat against ASEAN currencies. It dropped against the Singapore dollar to 3.1361/1399 from 3.1227/1284, weakened against the Indonesian rupiah to 237.5/237.8 from 236.9/237.4, and eased against the Philippine peso to 6.66/6.67 from 6.63/6.65.