Ringgit opens higher against US dollar on American bond yield concerns


THE ringgit opened higher against the US dollar today on concerns over US bond yields.

At 9.10 am, the ringgit was quoted at 4.1380/1420 versus the US dollar against 4.1421/1450 on Monday.

Axi Trader Asia-Pacific market strategist Stephen Innes said with tonnes of trade optimism baked into the US rates, the risk for the US dollar is that the explosion in US bond yields has run too far ahead of the economic realities.

“As such, conditions could be ripe for a reversal as the bears may start to add or reengage tactically underweight global equities and overweight global sovereigns. This rotation could weigh on the US dollar and boost gold sentiment,” he said in a statement today.

The local note was also traded mostly higher against other major currencies.

The ringgit increased against the Singapore dollar to 3.0418/0449 from Monday’s close of 3.0425/0451 and appreciated against the yen to 3.7901/7944 from 3.8008/8045.

It decreased against the British pound to 5.3211/3287 from 5.3023/3077 but appreciated versus the euro to 4.5650/5703 from 4.5679/5728.