Ringgit Opens Mixed as BOJ Rate Hike Raises Concerns

The ringgit opened mixed against major and Asean currencies on Monday after the Bank of Japan's (BOJ) rate hike last Friday.

The BOJ raised interest rates by 0.25% to 1.25%, marking its first hike since June, and pushing borrowing costs to their highest level in 31 years.

Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, said this had raised concerns about the ease of unwinding the yen carry trade, and higher crude oil prices could mean that inflation would remain elevated.

This, he added, would provide the US Federal Reserve with a reason to continue raising interest rates by another 25 basis points later this year.