Ringgit closes lower on rising bond yields

 

KUALA LUMPUR: The ringgit slid against the US dollar at today’s close on the back of a spike in bond yields amid fears that US interest rates will stay high for longer.

At 6pm, the ringgit weakened to 4.7855/4.7885 against the greenback from yesterday’s close of 4.7780/4.7830.

The overnight US Dollar Index rose to 106.27 as firmer US manufacturing and services activities supported the case for the Federal Reserve to raise interest rates further, ahead of its end-of-the-month meeting.

At home, the ringgit was higher versus a basket of major currencies.

It gained versus the British pound to 5.7847/5.7883 from 5.7905/5.7965 at the close yesterday, edged up against the Japanese yen to 3.1838/3.1860 from 3.1866/3.1902 and increased against the euro to 5.0468/5.0500 from 5.0494/5.0547.

The local note was also traded mostly higher against other Asean currencies, except against the Singapore dollar; it declined to 3.4900/3.4925 from 3.4871/3.4910 yesterday.

It strengthened against the Thai baht to 13.1952/13.2097 from 13.1960/13.2153, was higher against the Indonesian rupiah at 300.5/300.9 from 301.0/301.5 and was unchanged versus the Philippine peso at 8.40/8.41. - FMT