The ringgit opened higher against the US dollar on Wednesday as easing US Treasury yields and a softer greenback provided support to the local currency, Bernama reported.
At 8.04am, the ringgit stood at 4.0380/0445 against the US dollar compared with Monday’s close of 4.0405/0440. The Malaysian market was closed on Tuesday for the Prophet Muhammad’s birthday.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said long-term US Treasury yields remained in focus, with the 30-year Treasury yield falling six basis points to 5.17%.
He also pointed to reports that the US Treasury Department could tap its Treasury General Account, the cash held 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.
Afzanizam said uncertainty over the US Federal Reserve’s next policy move remained, putting attention on Fed chair Kevin Warsh’s speech at the Jackson Hole Symposium this week.
Against other major currencies, the ringgit opened mixed. It marginally strengthened against the Japanese yen to 2.5360/5402 from 2.5380/5402 previously but weakened against the pound to 5.5099/5187 from 5.5080/5128.
It also slipped against the euro to 4.7140/7215 from 4.7132/7173.
The local currency meanwhile gained against several regional currencies, firming against the Indonesian rupiah to 227.8/228.2 from 227.9/228.3 and the Philippine peso to 6.54/6.55 from 6.55/6.56.
The ringgit also rose against the Thai baht to 12.3486/3753 from 12.3589/3742.
However, it weakened against the Singapore dollar to 3.1810/186 from 3.1805/1835 at Monday’s close.
