This morning, the ringgit opened higher against the US dollar due to significant weakness following a very strong US 5-year bond auction and a significant decline in the US Core Personal Consumption Expenditure (Core PCE) price index in November.
At exactly 10am this morning, the ringgit was at the level of RM4.6100 from yesterday's close at around RM4.6268 against the US dollar.
According to SPI Director of Asset Management, Stephen Innes said that the strong US bond auction led to a decline in the US 10-year Treasury yield falling below 3.80%.
He also said that the sentiment serves as an indicator for investors to expect a significant interest rate cut by the Federal Reserve (Fed) in the coming year. The development will continue to have a positive effect on the ringgit.
Innes also looks to maintain his expectation that the USD/MYR exchange rate will trade below RM4.60 in early 2024 if US Treasury yields continue to decline.
Meanwhile, the ringgit traded lower against a group of major currencies.
It slipped against the Japanese yen to 3.2589 from 3.2453 on Wednesday, eased against the euro to 5.1251 from 5.1152 and fell against the British pound to 5.9030 from 5.8862 yesterday.
However, the local currency rose against other Asean currencies.
It rose against the Singapore dollar to 3.4956 from 3.5001 and rose against the Philippine peso to 8.28 from 8.31 on Wednesday.
