The ringgit opened higher against the US dollar and most major currencies on Friday, although global foreign exchange markets remained mixed.
At 8am, the ringgit strengthened to 4.0810/0865 against the greenback from Thursday’s close of 4.0840/0880.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said US Treasury yields remained an important influence on market sentiment, with the 30-year US Treasury yield rising eight basis points to 5.48%, its highest level in two decades.
“The rise in long-term bond yields implies that an inflation risk premium is building up, as heightened geopolitical risks in West Asia could exert upward pressure on crude oil prices.
“All this appears to have supported the US Dollar Index (DXY), which rose 0.19 per cent to 101.285 points, amid expectations that the US Federal Reserve will continue tightening monetary policy,” he told Bernama.
He expects the ringgit to trade between RM4.08 and RM4.10 against the US dollar today.
The local currency also strengthened against the euro to 4.6413/6476 from 4.6451/6497 previously and gained against the pound to 5.3910/3983 from 5.4023/4076.
Against the Japanese yen, the ringgit rose to 2.5694/5730 from 2.5723/5750.
The ringgit also advanced against several ASEAN currencies. It strengthened against the Singapore dollar to 3.1885/1931 from 3.1906/1940 and against the Thai baht to 12.1854/2091 from 12.1950/2121.
It edged higher against the Indonesian rupiah to 227.7/228.2 from 227.9/228.2 and gained against the Philippine peso to 6.50/6.51 from 6.51/6.52.
