KUALA LUMPUR: The ringgit opened marginally higher towards the US greenback in the present day on renewed shopping for curiosity amid barely easing demand for the greenback attributable to softer US Treasury yields, mentioned an analyst.
At 9.03 am, the native foreign money rose to 4.4030/4070 towards the greenback from Wednesday’s shut of 4.4050/4065.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid mentioned the yields on the two-year and 10-year US Treasury fell by 14 and 12 foundation factors to shut at 3.06 per cent and three.16 per cent, respectively, and this could provide the beleaguered ringgit some reduction in the present day.
“The benchmark equities had been additionally down, signalling that traders have shifted in the direction of the risk-free property,” he informed Bernama.
Meanwhile, he mentioned the United States Federal Reserve (Fed) is adamant about bringing down the inflation price to its goal degree of two.0 per cent though this would possibly trigger the financial system to enter a recession.
“This was toned down when Fed chairman Jerome Powell testified earlier than the US Senate Banking Committee,” he mentioned.
Following this, Mohd Afzanizam mentioned the ringgit is predicted to stay weak as market sentiments stay fragile following talks of a potential recession within the US that has gained additional traction.
Nonetheless, the ringgit was traded blended towards a basket of main currencies.
The native word appreciated towards the British pound to five.3946/3995 from Wednesday’s shut of 5.3966/3984 and gained vis-a-vis the Japanese yen to three.2361/2393 from 3.2392/2408.
It depreciated towards the euro to 4.6544/6586 from 4.6332/6348 yesterday and weakened versus the Singapore greenback to three.1729/1762 from 3.1707/1722 beforehand. – Bernama:
