KUALA LUMPUR, April 8 — The ringgit has opened slightly higher against the US dollar, receiving mild support following the weakening of the greenback after the United States’ (US) 10-year Treasury yields fell to a two-week low.
At 9.01am, the local unit stood at 4.1300/1350 against the US dollar from 4.1360/1390 at Thursday’s close.
The US dollar had declined despite US Federal Reserve chair Jerome Powell’s assurance that the central bank can reinvigorate the economy without stoking painful inflation.
“The stars could start to align for the struggling ringgit as the US yields continue to ebb, while the oil is finally showing some semblance of calm, attempting to form a base around Brent at US$63,” Axi chief global market strategist Stephen Innes said to Bernama.
However, he said the offset is a hint of disquiet on local bond markets.
“As oil goes higher, it starts to stir local reflation concerns, which also points to a repricing in domestic yields,” he noted.
Meanwhile, the ringgit was traded mostly lower against major currencies, with the exception of the British pound where it rose to 5.6783/6869 from 5.6825/6878 yesterday.
The local note slipped against the Singapore dollar to 3.0837/0881 from 3.0836/0867 on Thursday and fell versus the yen to 3.7800/7856 from 3.7744/7782 previously.
It had also declined against the euro at 4.9230/9293 from 4.9070/9109 previously.