Forex
Ringgit Opens Mixed Amid BOJ Rate Hike Concerns
The Malaysian ringgit opened mixed against major and ASEAN currencies on Monday. Investors were assessing the impact of the Bank of Japan's (BOJ) rate hike on Friday.
According to Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the BOJ's 0.25% interest rate hike has raised concerns about the ease of unwinding the yen carry trade.
The ringgit eased to 4.0810/0865 against the US dollar from last Friday's close of 4.0795/0840.
Dr. Afzanizam also noted that higher crude oil prices could lead to elevated inflation, providing a reason for the US Federal Reserve to continue raising interest rates by another 25 basis points later this year.