Ringgit Weakens Against US Dollar Amid Rising Bond Yields

The Malaysian ringgit weakened against the US dollar on Wednesday but held steady against other major currencies. The local currency was trading at 4.0435/4.0475 against the US dollar, a decline from yesterday's close of 4.0370/4.0410.

Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, attributed the ringgit's performance to rising bond yields in developed markets. He noted that higher long-term bond yields could signal a higher inflation risk premium following the rise in crude oil prices.

The ringgit did show some resilience against other currencies, however, appreciating against both the euro and the British pound. It rose to 4.6787/4.6834 against the euro and 5.4527/5.4581 against the British pound.