KUALA LUMPUR – The ringgit opened decrease towards the US greenback at present on rising US bond yields following Federal Reserve (Fed) chairman Jerome Powell’s hawkish assertion on the US financial coverage, stated an analyst.
At 9.03 am, the ringgit fell to 4.7220/7275 versus the dollar from Thursday’s closing fee of 4.6895/6965.
Financial institution Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid stated the two-year and 10-year US Treasury yields had been increased by 9.0 and 14.0 foundation factors to shut at 5.02 per cent and 4.63 per cent, respectively, whereas the US Greenback Index (DXY) rose 0.29 per cent to 105.904 factors.
“The monetary markets had been anxiously ready for Powell’s remarks on financial coverage throughout the Worldwide Financial Fund (IMF) discussion board final evening.
“True sufficient, the Fed chief indicated that the US rates of interest might have to rise additional to win the warfare towards inflation,” he advised Bernama.
It was reported that Powell’s feedback advised that the central financial institution isn’t 100 per cent satisfied the speed hike cycle is over.
On that notice, Mohd Afzanizam stated the ringgit is anticipated to remain weak, round RM4.69 to RM4.70.
In the meantime, the ringgit traded decrease versus a basket of main currencies.
It eased towards the Japanese yen to three.1199/1238 from 3.1050/1099 at Thursday’s shut, decreased versus the euro to five.0370/0428 from 5.0173/0248 and shrank towards the British pound to five.7703/7770 from 5.7695/7781 beforehand.
The native notice was additionally traded decrease towards different Asean currencies.
It depreciated towards the Singapore greenback to three.4703/4746 from 3.4563/4617 on Thursday and was down towards the Thai baht to 13.1914/2134 from 13.1802/2065 beforehand.
It had additionally declined towards the Philippine peso to eight.43/8.45 from 8.39/8.41 yesterday and slipped vis-a-vis the Indonesian rupiah to 301.5/302.1 from 299.5/300.1 on Thursday’s shut. – BERNAMA / pic TMR FILE