Ringgit Rises Against US Dollar Amid Geopolitical Risks

The Malaysian ringgit opened higher against the US dollar and most major currencies on Friday amid mixed movements in global foreign exchange markets.

At 8 am, the ringgit rose to 4.0810/0865 against the greenback from Thursday's close of 4.0840/0880, according to data from Bernama.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that movements in US Treasury yields continued to influence market sentiment, with the yield on 30-year US Treasury bonds rising eight basis points to 5.48 per cent, its highest level in two decades.

The rise in long-term bond yields implies that an inflation risk premium is building up, as heightened geopolitical risks in West Asia could exert upward pressure on crude oil prices, Dr Mohd Afzanizam said.