KUALA LUMPUR (Dec 20): The ringgit weakened to a new one-year level at 4.4823 against a stronger US dollar today in anticipation of further US interest rate hikes in 2017.

The 4.4823 exchange rate was last seen during the 1998 Asian financial crisis. During that year, the ringgit depreciated to its all-time weakest point at 4.8850 against the greenback.

FXTM vice president of corporate development and market research Jameel Ahmad said there is possibility of further ringgit weakening if the US dollar continues to get stronger.

"The dollar has appealed even more to investors since the Federal Reserve announced an intention towards raising US interest rates three times next year last week; this is why emerging market assets like the ringgit have declined since the Federal Reserve interest rate decision.

"I personally maintain my previous expectation that it is possible that the ringgit can extend towards 4.60 if the dollar buying spree continues," he said in an email response to theedgemarkets.com.