Kuala lumpur: The ringgit ended weaker against the US dollar on Wednesday, influenced by cautious market sentiment due to the evolving situation in West Asia, according to an economist. At 6 pm, the local currency eased to 4.0670/0720 against the greenback, compared to Tuesday's close of 4.0605/0640.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that Brent crude prices reached a significant psychological threshold of US$100 per barrel, as tensions between the US-Israel and Iran escalate. This ongoing conflict raises uncertainties about crude oil supplies from the Gulf region.

Dr. Mohd Afzanizam highlighted a potential risk of heightened inflation due to increased energy prices. This situation could prompt a tighter monetary policy stance by the United States Federal Reserve and the Bank of Japan next week. He emphasized that the upcoming US consumer price index (CPI) report, scheduled for release on Friday, will be a crucial data point. Consensus estimates project headline inflation at 3.4 percent for August, mirroring July's figures, while core CPI is anticipated to slightly decrease to 2.4 percent from July's 2.5 percent.

At the market's close, the ringgit also weakened against a basket of major currencies. It fell against the euro to 4.7275/7333 from Tuesday's 4.7151/7191, depreciated against the British pound to 5.5043/5110 from 5.4926/4974, and dropped against the Japanese yen to 2.6474/6509 from 2.6374/6398.

Additionally, the ringgit traded lower against the Philippine peso to 6.50/6.52 from 6.48/6.49 on Tuesday and declined against the Singapore dollar to 3.2150/2192 from 3.2073/2104. It also fell against the Thai baht to 12.3579/3788 from 12.3285/3447 and weakened against the Indonesian rupiah to 232.2/232.6 from 230.3/230.5 at the previous close.