Ringgit ends at 31-month fresh high

KUALA LUMPUR: The ringgit extended yesterday's gains to close at a fresh high in more than 31 months, the level last seen on Aug 4, 2015, as buying interests persisted following a sharp pullback in benchmark US 10-year Treasury bond yields overnight.
At 6pm, the local note finished 135 basis points better at 3.8620/8660 against Tuesday's close of 3.8755/8785, while on Aug 4, 2015, it was closed at 3.8520/8550 versus the greenback.
OANDA Head of Trading Asia-Pacific, Stephen Innes, said the US bond yields moved below the 2.79% overnight, making the ringgit-denominated bonds very attractive from a carry trade perspective.
"Both the ringgit and Malaysian Government Securities bond investor positioning was very light.
"However, with lower US yields, investors took interest and bought local bonds providing a boost to the ringgit," he told Bernama today.
The local note was also traded firmer against a basket of major currencies.
It rose against the yen to 3.6541/6589 from 3.6665/6697 on Tuesday and appreciated against the Singapore dollar to 2.9506/9541 from 2.9613/9645 yesterday.
The local unit advanced against the euro to 4.7850/7915 from 4.8110/8152 on Tuesday and vis-a-vis the pound, it was higher at 5.4655/4731 from yesterday's 5.4745/4795. — Bernama