Ringgit flat against US dollar in early trade

KUALA LUMPUR: The ringgit was almost flat against the US dollar in early trade today as investors remained on the sidelines, awaiting fresh leads to move the market.

At 9.07 am, the local note was traded at 4.4340/4385 against the greenback compared with 4.4315/4350 at the close on Tuesday.

SPI Asset Management managing director Stephen Innes said after getting hobbled by global higher yields and a broad risk sell-off across Asia yesterday following the Bank of Japan’s (BOJ) surprise decision to tighten financial conditions, based on the broader US dollar moves especially versus the Japanese yen, the ringgit should recover a good chunk of lost ground as global risk sentiment seems to be taking the rise on global yields in stride.

“The local note should be trading between the 4.42 and 4.43 level today,” he told Bernama.

In a surprise move, the BoJ said it would be widening the yield target band, allowing the yields on 10-year government bonds to move up or down within 50 basis points around its zero per cent target, wider than the previous 25 basis points band.

At home, the latest inflation print will also be released this week.

Meanwhile, the ringgit was traded mixed against a basket of major currencies.

The local note was marginally higher versus the Singapore dollar to 3.2801/2841 from 3.2816/2847 at Tuesday’s close and rose versus the euro to 4.7080/7128 from 4.7133/7171.

However, it depreciated vis-a-vis the yen to 3.3642/3679 from 3.3531/3565, and fell against the British pound to 5.4002/4056 from 5.3834/3876 yesterday. – Bernama