The ringgit opened slightly higher against the US dollar and several major currencies on Tuesday, although elevated US Treasury yields continued to support demand for the greenback, Bernama reported.
At 8am, the ringgit edged up to 4.0800/0865 against the US dollar from Monday’s close of 4.0805/0845.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Brent crude remained above US$106 a barrel on Monday as the US-Iran standoff persisted, keeping energy-driven inflation concerns in focus.
“Meanwhile, US Treasury yields moved sharply higher, with the two-year and 10-year yields hovering around 4.9 and 5.2 per cent, respectively,” he told Bernama.
He said higher US yields reinforced the relative attractiveness of US dollar assets and could limit demand for emerging-market currencies such as the ringgit.
Against major currencies, the ringgit strengthened against the euro to 4.6390/6464 from 4.6416/6461 previously. It also rose against the British pound to 5.4072/4158 from 5.4099/4152 and gained against the Japanese yen to 2.5928/5971 from 2.5994/6021.
The local note was mixed against ASEAN currencies.
It eased against the Singapore dollar to 3.1937/1991 from 3.1914/1948 but was little changed against the Philippine peso at 6.52/6.54 compared with 6.52/6.53 previously.
The ringgit was also flat against the Indonesian rupiah at 226.9/227.3 against 226.9/227.2.
However, it strengthened against the Thai baht to 12.1338/1589 from 12.1429/1588 previously.
