Ringgit extends losses against US dollar

KUALA LUMPUR: The ringgit extended its losses against the US dollar today weighed by rising US bond yields, a dealer said.
At 6pm, the ringgit was quoted at 3.8965/8995 from 3.8950/9000 on Friday.
OANDA Head of Trading in Asia-Pacific, Stephen Innes, said a rising US bond yields buoyed the US dollar despite higher oil prices which usually played favourably for the ringgit.
"Higher US yields have played a role in supporting the US dollar as surging oil prices make for a compelling inflationary storyline," he said.
US 10-year Treasury yield touched a peak of 2.979%, the highest since January 2014, adding to gains made last week after US Federal Reserve officials signalled further interest rate increases in 2018 following solid growth in US economy.
Gold futures contract on Bursa Malaysia Derivatives closed marginally lower today on lack of buying interest amid a weaker New York Commodity Exchange’s (COMEX) gold futures market, a dealer said.
Phillip Futures Sdn Bhd Dealer Ong Su Ling said COMEX gold fell during Asian trading on dollar strengthening and easing geopolitical tensions.
“The Bursa gold will likely track the US gold market to trade cautiously before the main central banks’ interest rate decisions.
“The European Central Bank will be releasing its interest rate decision on Thursday while the Bank of Japan will announce its interest rate decision on Friday,” she told Bernama.
April 2018, May 2018, June 2018 and July 2018 eased 10 ticks each to RM167.80, RM168.10, RM168.10 and RM168.10 a gramme respectively.
Volume was nil as compared to Friday’s three lots worth RM50,400, while open interest declined to 63 contracts from 67 contracts previously.
At 5 pm, the price of physical gold went down RM1.41 to RM161.03 per gramme. — Bernama