KUALA LUMPUR – The ringgit opened marginally higher against the US dollar today on renewed buying interest amid slightly easing demand for the greenback due to softer US Treasury yields, said an analyst.
At 9.03am, the local currency rose to 4.4030/4070 against the greenback from Wednesday’s close of 4.4050/4065.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the yields on the two-year and 10-year US Treasury fell by 14 and 12 basis points to close at 3.06% and 3.16%, respectively, and this should offer the beleaguered ringgit some relief today.
“The benchmark equities were also down, signalling that investors have shifted towards the risk-free assets,” he told Bernama.
Meanwhile, he said the United States Federal Reserve (Fed) is adamant about bringing down the inflation rate to its target level of 2.0% although this might cause the economy to go into a recession.
“This was toned down when Fed chairman Jerome Powell testified before the US Senate Banking Committee,” he said.
Following this, Mohd Afzanizam said the ringgit is expected to remain weak as market sentiments remain fragile following talks of a possible recession in the US that has gained further traction.
Nonetheless, the ringgit was traded mixed against a basket of major currencies.
The local note appreciated against the British pound to 5.3946/3995 from Wednesday’s close of 5.3966/3984 and gained vis-a-vis the Japanese yen to 3.2361/2393 from 3.2392/2408.
It depreciated against the euro to 4.6544/6586 from 4.6332/6348 yesterday and weakened versus the Singapore dollar to 3.1729/1762 from 3.1707/1722 previously. – Bernama / pic Muhd Amin Naharul