Ringgit Strengthens Against Major Currencies Amid Global Market Volatility
The ringgit has 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 Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, movements in US Treasury yields continued to influence market sentiment. The yield on 30-year US Treasury bonds rose 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. All this appears to have supported the US Dollar Index (DXY), which rose 0.19 per cent to 101.285 points, amid expectations that the US Federal Reserve will continue tightening monetary policy.