Ringgit opens higher against US dollar, major currencies

KUALA LUMPUR, Sept 25 — The Malaysian ringgit opened stronger against the US dollar and other major currencies on Monday, amidst fluctuations in global foreign exchange markets. By 8 am, the ringgit climbed to 4.0810/0865 against the greenback, marking an improvement from yesterday's closing rate of 4.0840/0880. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid highlighted that movements in U.S. Treasury yields continue to sway market sentiment, with the yield on 30-year U.S. Treasury bonds increasing eight basis points to 5.48 percent, its highest level in two decades.

Dr Rashid explained that the rise in long-term bond yields suggests a growing inflation risk premium, as heightened geopolitical tensions in West Asia may push up crude oil prices. This development appears to have bolstered the U.S. Dollar Index (DXY), which rose 0.19 percent to 101.285 points, reflecting expectations that the U.S. Federal Reserve will continue to tighten monetary policy.

Dr Rashid predicted the ringgit would trade within a range of RM4.08 and RM4.10 against the U.S. dollar today. At the market opening, the ringgit demonstrated strength against various major currencies, including the euro, British pound, Japanese yen, Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.