KUALA LUMPUR, March 22 — The ringgit opened lower versus the US dollar on Monday as the continued United States (US) bond yields strengthened the greenback.
As at 9am, the ringgit opened lower against the greenback at 4.1130/1180 compared with 4.1050/1100 at Friday’s close.
Axi chief global market strategist Stephen Innes said the ringgit will remain tethered to the inescapable clutch of the US yields and inflation curve momentum.
Yields on US Treasuries have surged to their highest level in more than a year from record lows hit in 2020 as the Federal Reserve decided to hold rates near zero for years to come, a move to boost the US economy.
“Dollar bulls will continue to favour 10-year US Treasuries moving to 2.25 per cent, hence, the local note can remain defensive for a while,” he told Bernama, adding that he had turned more neutral on the ringgit as both the commodity and rates channels present some near-term challenges.
At the time of writing, crude oil fell 1.24 per cent to US$63.74 per barrel.
Against other major currencies, the ringgit was traded mostly lower except with British pounds which it improved to 5.6870/6944 from 5.7150/7228 at Friday’s close.
The ringgit depreciated against the Singapore dollar to 3.0598/0647 from 3.0564/0603 on Friday and fell against the euro to 4.8879/8955 from 4.8813/8884.
The local unit declined vis-a-vis the yen to 3.7762/7818 from 3.7712/7762.
— Bernama
