KUALA LUMPUR: The ringgit extended yesterday’s gains to end higher against the US dollar today amid softer US Treasury yields, said an analyst.
At 6 pm, the local unit strengthened to 4.1080/1130 against the greenback from Thursday’s close of 4.1105/1145.
A dealer said it was reported that the US 10-year Treasury yield fell slightly on news that President Joe Biden would roll out a plan to raise taxes for high earners, while the weakening greenback lent further support to the local currency.
“The US Treasury yields are a more significant driver for the ringgit than crude oil, and lower US yields make Malaysian Government Securities more attractive to foreign investors,” he said.
Meanwhile, the ringgit was traded mixed against other major currencies.
It rose against the Singapore dollar to 3.0936/0978 from Thursday’s 3.0948/0980 but declined vis-a-vis the euro to 4.9522/9595 from 4.9490/9555 yesterday.
The ringgit appreciated against the British pound to 5.7007/7093 from 5.7152/7212 yesterday but went down versus the yen to 3.8069/8119 from 3.8036/8076. — Bernama