Ringgit Rises as US Dollar Eases Amid Treasury Yield Slump

The Malaysian ringgit opened higher against the US dollar on August 26, supported by a softer greenback and easing US Treasury yields. According to Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid, long-term US Treasury bond yields remained in focus, with the yield on 30-year US Treasury securities declining by six basis points to 5.17 per cent.

Reports suggest that the US Treasury Department may tap the Treasury General Account to finance its buyback programme. This move could impact the value of the dollar, as seen in the decline of the US Dollar Index (DXY) to 98.905 points, down 0.10 per cent from Monday's close.

The ringgit traded lower against a basket of major currencies but marginally improved against the Japanese yen. However, it weakened against the British pound and fell versus the euro. The local currency firmed up against most regional currencies, including the Indonesian rupiah, Philippine peso, and Thai baht.