Ringgit stronger against US dollar on lower US bond yield

KUALA LUMPUR: The ringgit strengthened against the US dollar at the opening today as demand for the latter diminished due to rising United States (US) jobless claims, weaker housing sales and slightly lower US bond yields, which ultimately favoured the ringgit.

At 9.01 am, the local currency rose to 4.4510/4550 versus the greenback from Thursday’s close of 4.4575/4590.

SPI Asset Management managing partner Stephen Innes said the ringgit should perform marginally better due to slightly lower US bond yields.

“Updates from the US which include US jobless claims, softer house sales and an increase in domestic gasoline inventories all indicate that the potential US Federal Reserves‘ rate hikes are causing a slowdown in US demand, resulting in a decline in US yields that is favourable for the ringgit,” he told Bernama.

However, the ringgit traded easier against a basket of major currencies.

The local currency slipped against the Singapore dollar to 3.2003/2037 from 3.1960/1976 on Thursday and declined versus the British pound to 5.3359/3407 from 5.3236/3254 previously.

It had also eased versus the Japanese yen to 3.2406/2440 from 3.2128/2142 at yesterday’s close and depreciated vis-a-vis the euro to 4.5427/5468 from 4.5386/5402 previously.-Bernama