KUALA LUMPUR, Aug 26 — The ringgit opened higher against the US dollar today, supported by a softer greenback and easing US Treasury yields, an analyst said.
At 8.04 am, the local currency edged up to 4.0380/0445 against the greenback from Monday’s close of 4.0405/0440. The market was closed yesterday in conjunction with Prophet Muhammad’s birthday.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said long-term US Treasury bond yields remained in the limelight, with the yield on 30-year US Treasury securities declining by six basis points to 5.17 per cent.
He noted reports that the US Treasury Department may tap the Treasury General Account — cash parked at the Federal Reserve — to finance its buyback programme.
“Consequently, the US Dollar Index (DXY) fell 0.10 per cent to 98.905 points.
“On that note, the ringgit could be well supported as the US authority is not in favour of a higher interest rate environment,” he told Bernama.
Mohd Afzanizam said uncertainty remained over the US Federal Reserve’s next policy move. Therefore, US Fed chair Kevin Warsh’s speech at the Jackson Hole Symposium this week will be closely scrutinised.
At the opening, the ringgit traded lower against a basket of major currencies but marginally improved against the Japanese yen to 2.5360/5402 from 2.5380/5402 at Monday’s close.
It weakened against the British pound to 5.5099/5187 from 5.5080/5128 and fell versus the euro to 4.7140/7215 from 4.7132/7173 previously.
The local note traded higher against most regional currencies.
It firmed versus the Indonesian rupiah to 227.8/228.2 from 227.9/228.3, edged up against the Philippine peso to 6.54/6.55 from 6.55/6.56 and rose against the Thai baht to 12.3486/3753 from 12.3589/3742 previously.
However, it fell against the Singapore dollar to 3.1810/3186 from 3.1805/31835 on Monday.
