Today, the Malaysian Ringgit (RM) remained open lower against the US dollar as the US dollar index (DXY) rose by 0.1% to 104.153. Traders are already anticipating interest rate cuts by the European Central Bank which will also give support to the US dollar again.
According to the Chief Economist of Bank Muamalat Malaysia Bhd, Afzanizam Rashid said the bond market will continue to rise guided by the weakening labor market.
He also said that the US 10-year treasury yield decreased by six basis points to 4.10% and the UK 10-year yield decreased by eight basis points to 3.94%. This shows that the Federal Reserve (Fed) is bullish on the bond market in anticipation of weaker global growth in 2024.
Due to the US dollar index continuing to remain positive, the ringgit is expected to hover around RM4.66 to RM4.68 today.
In addition, the ringgit is seen to be stronger than other major world currencies except the US dollar. It stands at 4.6705 compared to yesterday's close of 4.6665.
Compared to the euro, the ringgit rose to 5.0301 and the British pound to 5.8666. As for the Japanese yen, it fell to 3.3067 compared to before.
