KUALA LUMPUR (Dec 16): The ringgit continued to weaken after the US Federal Reserve announced its first interest rate increase of 2016 and indicated a more rapid increase in rates in 2017 than initially anticipated.

At 2.30pm today, the ringgit was trading at 4.4775 against the US dollar.

A hawkish Federal Open Market Committee saw most of the currencies fell against the greenback, with the Japanese yen leading the pack.

Year to date, the ringgit has fallen by about 4.3% against the US dollar.

Against the Singapore dollar, the ringgit strengthened by 0.08% to 3.1063 but has weakened by about 2.12% year to date.

According to ForexTime Ltd research analyst Lukman Otunuga, the US dollar strength would become a key theme in 2017 as the improving sentiment towards the US entices bullish investors to propel the greenback higher.

Recall that the last time the ringgit fell to such a level, it was pegged against the US dollar at 3.80 during the Asian Financial Crisis in 1998, which lasted for almost seven years while remaining floated against other currencies.