KUALA LUMPUR, Dec 28 — The ringgit opened higher against the US dollar today as the greenback displayed notable weakness following a remarkably robust five-year United States (US) Bond auction, said an analyst.
At 9.05am, the ringgit appreciated to 4.6110/6145 against the US dollar from Wednesday’s close of 4.6275/6330.
SPI Asset Management managing director Stephen Innes said that the strong US bond auction led to a decline in US 10-year yields, dropping below 3.80 per cent.
“This serves as a strong indicator that investors are anticipating significant rate cuts by the Federal Reserve in the coming year.
“This development should also bode well for the ringgit,”
Innes also maintained his expectation that the USD/MYR exchange rate will trade below 4.60, possibly not within this week but certainly in the early part of 2024 if US yields continue to decrease.
Meanwhile, the ringgit was traded lower against a basket of major currencies.
It depreciated against the Japanese yen to 3.2589/2616 from 3.2453/2494 on Wednesday, fell against the euro to 5.1251/1290 from 5.1152/1213, and declined against the British pound to 5.9030/9075 from 5.8862/8932 at yesterday’s close.
The local note, however, rose against other Asean currencies.
It appreciated vis-a-vis the Singapore dollar to 3.4956/4985 from 3.5001/5045 and increased against the Philippine peso to 8.28/8.30 from 8.31/8.33 on Wednesday’s close.
The ringgit was also firmer versus the Thai baht to 13.4486/4651 from 13.4559/4790 yesterday and rose against the Indonesian rupiah to 298.7/299.2 from 299.8/300.4 previously.
— Bernama
