The ringgit opened higher against the US dollar and most major currencies on Friday, tracking mixed movements in the global foreign exchange market.
At 8am, the local currency strengthened to RM4.0810/0865 against the US dollar, compared with RM4.0840/0880 at Thursday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said movements in US Treasury yields continued to influence market sentiment.
He noted that the yield on 30-year US Treasury bonds rose eight basis points to 5.48%, its highest level in two decades.
“The rise in long-term bond yields indicates an increase in inflation risk premiums as escalating geopolitical risks in West Asia put pressure on crude oil prices,” he told Bernama.
Mohd Afzanizam said the factors were supporting the US Dollar Index (DXY), which rose 0.19% to 101.285 points amid expectations that the US Federal Reserve would maintain a tight monetary policy.
He expects the ringgit to trade between RM4.08 and RM4.10 against the US dollar today.
Against major currencies, the ringgit strengthened to 4.6413/6476 per euro from 4.6451/6497, while rising to 5.3910/3983 against the pound from 5.4023/4076.
It also gained against the Japanese yen, trading at 2.5694/5730 compared with 2.5723/5750 previously.
The ringgit also strengthened against several ASEAN currencies, rising to 3.1885/1931 against the Singapore dollar from 3.1906/1940 and to 12.1854/2091 against the Thai baht from 12.1950/2121.
It also edged higher against the Indonesian rupiah to 227.7/228.2 from 227.9/228.2 and against the Philippine peso to 6.50/6.51 from 6.51/6.52.
