KUALA LUMPUR – The ringgit opened lower against the US dollar on better demand for the greenback driven by strong US yields, analysts said.
At 9am, the local note slipped to 4.4520/4565 against the US dollar from last Friday’s close of 4.4335/4370.
It was reported the US 10-year yields rose six basis points (bps) to 3.94% and two-year yields gained 12bps to 4.81%.
SPI Asset Management managing director Stephen Innes said higher US yields and risk sentiment would give negative impact to the ringgit.
“The turn in sentiment followed a solidly stronger-than-expected core personal consumption expenditures price index deflator report, adding to concerns about the need for a higher Federal Reserve terminal rate,” he said.
Innes said traders could start to position for China’s upcoming National People’s Congress meetings on March 5 which could limit regional losses.
Meanwhile, the ringgit was traded mixed against a basket of major currencies.
The local unit strengthened against the Japanese yen to 3.2670/2706 from 3.2804/2833 last Friday and appreciated versus the British pound to 5.3246/3300 from 5.3308/3350 previously.
It was slightly lower against the euro at 4.6986/7034 from 4.6933/6970 and fell marginally versus the Singapore dollar to 3.2990/3026 from 3.2970/3001 at Friday’s close. – Bernama, February 27, 2023
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