The ringgit was marginally higher against the US dollar at the opening on Tuesday, following a slight retreat of the greenback overnight, with investors focused on the upcoming March inflation data from the US on Wednesday.
At 9am, the local currency had improved to 4.7485/7530 versus the US dollar, from Monday’s closing at 4.7505/7545.
SPI Asset Management managing partner Stephen Innes said that a higher-than-expected inflation print in the US could delay interest rate cuts, putting pressure on the ringgit.
“The biggest worry for the ringgit is higher US yields. We went from 4.19% on March 1 to 4.42% yesterday (Monday) for the 10-year yield.
“The low this year is 4.09% in January, hinting that the ringgit could trade much weaker if US economic data stays strong amid stickiness to higher inflation signals. This could happen, especially if we move into a no-rate-cut [scenario] in 2024,” he added.
However, renewed efforts to negotiate a ceasefire in the Middle East could reduce the safe-haven appeal of the dollar, he said.
In opening trade, the ringgit was traded mixed against a basket of major currencies.
It fell against the euro to 5.1559/1608 from 5.1434/1477 at Monday’s close, strengthened vis-a-vis the Japanese yen to 3.1259/1290 from 3.1278/1306, but eased further versus the British pound to 6.0083/0140 from 5.9980/0030 previously.
The ringgit was traded mostly higher against Asean currencies.
It was higher versus the Thai baht at 12.9394/9566 from 12.9434/12.9596 at Monday’s close, inched up vis-a-vis the Indonesian rupiah to 299.5/300.0 from 299.7/300.1, and rose versus the Philippine peso to 8.40/8.42 from 8.41/8.42 previously.
It went down against the Singapore dollar to 3.5237/5273 from 3.5202/5234.
