KUALA LUMPUR, April 26 — The ringgit opened slightly 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 9am, the local note stood at 4.3500/3530 versus the greenback from Mondays’s close of 4.3560/3580.
According to reports, demand for the US Treasurys sent yields tumbled Monday morning as worries over China’s economy added to fears of a faster-than-predicted increase in US interest rates and sent investors out of perceived riskier assets.
The yield on the 10-year Treasury note, which fell eight basis points to 2.825 per cent Monday afternoon, after dipping below 2.8 per cent, should offer the beleaguered ringgit some relief today, said SPI Asset Management managing partner Stephen Innes.
“However, I do not suggest donning the rally caps just yet, as we have a hawkish Federal Open Market Committee (FOMC) meeting lying in wait for any US dollar bears on the first week of May.
“I think the ringgit-US dollar would likely move between 4.3450 and 4.3600, as global risk should do a bit better on the back of softer US yields,” he told Bernama.
Meanwhile, the ringgit was traded mixed against a basket of major currencies.
The local note slid versus the Japanese yen to 3.4091/4117 from Monday’s close of 3.3968/3986 yesterday but rose against the euro to 4.6671/6703 from 4.6740/6761.
It appreciated against the Singapore dollar to 3.1680/1707 from Monday’s close of 3.1698/1718 and decreased vis-a-vis the British pound to 5.5445/5483 from 5.5426/5451.
— Bernama
