KUALA LUMPUR (June 23): The ringgit opened marginally higher against the US dollar on Thursday (June 23) on renewed buying interest amid slightly easing demand for the greenback due to softer US Treasury yields, said an analyst.
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At 9.03am, the local currency had risen to 4.4030/4070 against the greenback from Wednesday’s close at 4.4050/4065.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the yields on the two-year and 10-year US Treasury fell by 14 and 12 basis points to close at 3.06% and 3.16% respectively, and this should offer the beleaguered ringgit some relief on Thursday.
“The benchmark equities were also down, signalling that investors have shifted towards risk-free assets,” he told Bernama.
Meanwhile, he said the US Federal Reserve (Fed) is adamant about bringing down the inflation rate to its target level of 2% although this might cause the economy to go into a recession.
“This was toned down when Fed chairman Jerome Powell testified before the US Senate Banking Committee,” he said.
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Following this, Mohd Afzanizam said the ringgit is expected to remain weak as market sentiments remain fragile following talk of a possible recession in the US that had gained further traction.
Nonetheless, the ringgit was traded mixed against a basket of major currencies.
The local note appreciated against the British pound to 5.3946/3995 from Wednesday’s close at 5.3966/3984 and gained vis-a-vis the Japanese yen to 3.2361/2393 from 3.2392/2408.
It depreciated against the euro to 4.6544/6586 from 4.6332/6348 on Wednesday and weakened versus the Singapore dollar to 3.1729/1762 from 3.1707/1722 previously.-BERNAMA