Ringgit opens higher against US dollar and major currencies

The Malaysian ringgit opened higher against the US dollar and most major currencies on Friday. At 8:00 am, the ringgit rose to a range of 4.0810/0865 against the greenback, compared to Thursday’s close of 4.0840/0880.

Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that movements in US Treasury yields continue to influence market sentiment. The yield on 30-year US Treasury bonds rose eight basis points to 5.48 percent, reaching its highest level in two decades. This rise suggests an increasing inflation risk premium, driven by heightened geopolitical risks in West Asia that could pressure crude oil prices.

The US Dollar Index (DXY) rose 0.19 percent to 101.285 points as markets anticipate the US Federal Reserve will maintain a tight monetary policy. The ringgit also strengthened against the euro, British pound, Japanese yen, and several ASEAN currencies, including the Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.