The Malaysian ringgit ended weaker against the US dollar on Wednesday after Brent crude rose above $100 a barrel, reviving concerns that energy-driven inflation could keep the Federal Reserve and Bank of Japan on a tighter policy path. The ringgit closed at 4.0670/0720 per dollar, compared with 4.0605/0640 on Tuesday, after reaching 4.0560/0635 in morning trading. Brent futures gained more than 1.4% to $99.37 before touching $100, as the conflict involving the United States, Israel and Iran continued to unsettle markets. Bank Muamalat Malaysia chief economist Mohd Afzanizam Abdul Rashid said Friday’s US consumer price index (CPI, a measure of consumer inflation) would be the key data point, with August headline inflation expected at 3.4% and core CPI at 2.4%. Markets are pricing roughly a 60% chance of a Federal Reserve rate increase this month ahead of the Federal Open Market Committee’s September 15-16 meeting, while the Bank of Japan meets September 17-18. Higher Treasury yields and bill auction rates of 3.80% for three-month bills and 3.89% for six-month bills have reinforced expectations of tighter policy. The yen has risen nearly 4% since early last week to about 153.5 per dollar, supported by expectations of a 25-basis-point Bank of Japan rate increase, possible repatriation of Japanese overseas funds and US political pressure for a stronger yen. Malaysia’s ringgit also weakened against the euro, pound, yen and major Southeast Asian currencies. Analysts said higher oil prices and yields could limit further dollar declines in the near term, while the inflation report will help determine whether the ringgit’s weakness is temporary or develops into a longer slide.