KUALA LUMPUR – The ringgit opened lower versus the United States dollar as continued US bond yields strengthen the greenback.
As at 9am, the local note was lower against the greenback at 4.1130/1180 compared with 4.1050/1100 at the close last Friday.
Axi chief global market strategist Stephen Innes said the ringgit will remain tethered to US yields and the inflation curve momentum.
Yields on US Treasuries have surged to their highest level in more than a year from record lows in 2020 as the Federal Reserve opted to hold rates near zero for years to come, in a move to boost the US economy.
Bursa Malaysia, too, was lower in early trade after US Treasury yields edged back from their highest in more than a year on Friday.
At 9.12am, the FTSE Bursa Malaysia KLCI fell 3.34 points to 1,622.85 from Friday’s close of 1,626.19.
The index was 2.28 points higher at 1,628.47 at 9am, turning easier one minute after.
On the broader market, losers outpaced gainers 324 to 268, while 358 counters were unchanged, 1,287 untraded and 37 suspended.
Total volume stood at 836.49 million shares worth RM340.87 million.
Public Investment Bank Bhd said investors digested the Fed’s move not to extend a temporary pandemic regulatory break expiring this month, and oil prices rebounded from severe slides. – Bernama, March 22, 2021
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