This is due to the better demand for the greenback amid the strong US Treasury yields

THE ringgit opened lower against the US dollar today on better demand for the greenback amid the strong US Treasury yields, analysts said.

However, the ringgit’s slide was capped by steadier oil prices, stemming from hopes of a demand recovery as China eases its Covid-19 restrictions.

At 9am, the local note slipped to 4.4280/4335 against the US dollar from yesterday’s close of 4.4205/4255.

According to reports, the US Treasury bond yields rose to their highest levels for the month of December yesterday as investors returned from the holiday weekend and awaited further clues on the economic outlook heading into 2023.

SPI Asset Management MD Stephen Innes said the US bond yields punched higher due to inflation concerns as China’s consumption revival could spark another round of price pressure on key commodity prices that have contributed to global inflation this year.

“Mounting uncertainty over the return of mobility in China also remains, with question marks about how much of a bounce Malaysia’s export sector will see in the first half of 2023,” Innes told Bernama.

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.

The local note was better against the British pound to 5.3220/3286 from yesterday’s close of 5.3267/3327 and appreciated vis-a-vis the Japanese yen to 3.3111/3155 against 3.3182/3222 previously.

The ringgit marginally improved against the euro to 4.7056/7115 from yesterday’s 4.7092/7145 but slipped versus the Singapore dollar to 3.2880/2926 from yesterday’s close of 3.2847/2889. — Bernama / pic TMR