Ringgit closes higher amid falling US bond yields

 

KUALA LUMPUR: 

The ringgit closed higher against the US dollar today, buoyed by a decline in US bond yields after the appointment of Scott Bessent as the US Treasury secretary.

The US 10-year treasury yield dropped today to about 4.34%, a two-week low.

SPI Asset Management managing director Stephen Innes said that the ringgit has strengthened notably, buoyed by a decline in US bond yields following the appointment of Bessent.

“Bessent is expected to moderate the aggressive domestic and international agendas of the US administration under Donald Trump.

“While aligned with Trump’s overarching philosophies, (Bessent’s) approach indicates that the rollout of tariffs and tax cuts may proceed more gradually than markets had anticipated, creating room for negotiation,” he told Bernama.

Innes reckons this measured strategy could result in a softer implementation of policies, easing initial investor concerns about abrupt changes.

At 6pm, the local currency bounced to 4.4495/4.4570 against the greenback, compared with Friday’s close of 4.4660/4.4710.

The ringgit traded mostly lower against a basket of major currencies.

It dropped against the British pound to 5.5939/5.6033 from 5.5870/5.5932 and fell against the euro to 4.6662/4.6741 from 4.6455/4.6507 at Friday’s close.

However, it went up against the Japanese yen to 2.8811/2.8861 from 2.8906/2.8942.

The local unit traded higher against Asean currencies.

It climbed against the Singapore dollar to 3.3028/3.3088 from 3.3101/3.3141, rose against the Thai baht to 12.8390/12.8670 from 12.9068/12.9276 and gained against the Philippine peso to 7.54/7.56 from 7.58/7.59.

It ticked up vis-a-vis the Indonesian rupiah to 280.1/280.7 from 281.2/281.7. - FMT