Ringgit opens lower amid elevated US Treasury yields
The Malaysian ringgit opened lower against the US dollar due to rising US Treasury yields and uncertainty regarding Federal Reserve interest rate policies. Market analysts are closely watching upcoming US nonfarm payroll data and geopolitical tensions affecting oil prices.
Why it matters
Currency fluctuations impact international trade and inflation, making the ringgit's performance a key indicator for the Malaysian economy's stability.
KUALA LUMPUR: The ringgit opened lower against the US dollar on Tuesday amid elevated US Treasury yields and uncertainty over the US Federal Reserve’s (Fed) interest rate outlook, said an analyst.
At 8 am, the local currency eased to 4.0300/0350 against the greenback from last Friday’s close of 4.0230/0270.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the 30-year US Treasury bond yield has been rising persistently to 5.25 per cent, amid expectations that the Fed could maintain a cautious stance on interest rates at the upcoming Federal Open Market Committee meeting on September 15-16.
"This happened following Fed chairman Kevin Warsh’s speech on Friday at the Jackson Hole Symposium, where he explicitly indicated that inflation remains high while the labour market remains healthy.
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