KUALA LUMPUR – The ringgit eased against the US dollar at the opening today on better demand for the greenback amid firmer US Treasury yields.
At 9am, the ringgit fell to 4.7225/7270 against the greenback compared with yesterday’s close of 4.7200/7250.
Nevertheless, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit is expected to remain stable at around RM4.72 to the American currency after reaching a 26-year low in February and on remarks by the Malaysian central bank that the ringgit is undervalued.
“Views on US (interest) rates will continue to be the main driver for the currency market especially when the market expectation for the timing of the US rate cut has been pushed to July.
“For now, the bullish view on the US dollar is still intact although intermittently we could see the US Dollar Index (DXY) dwindling,” he told Bernama.
The ringgit was traded mostly lower against a basket of major currencies.
The local currency slid against the British pound to 5.9938/9995 from 5.9840/9904 on Monday’s close, slipped versus the euro to 5.1249/1297 from 5.1198/1252 yesterday, but firmed vis-a-vis the Japanese yen to 3.1398/1430 from 3.1410/1445 previously.
At the same time, the ringgit traded mostly lower against other Asean currencies.
It was lower versus the Thai baht at 13.1976/2157 from Monday’s close of 13.1766/1965, dropped against the Singapore dollar to 3.5153/5189 compared to 3.5137/5177, depreciated vis-a-vis the Indonesian rupiah to 299.9/300.4 from 299.7/300.2 and was flat against the Philippine peso at 8.43/8.45 from 8.43/8.44 previously. – March 5, 2024