KUALA LUMPUR, March 5 — A combination of factors including the rise in 10-year US Treasury yield and China’s modest 2021 gross domestic product growth forecast have weighed on the ringgit’s performance against the US dollar today, despite firmer oil prices.
At 6pm, the ringgit fell further to 4.0720/0760 against the greenback from 4.0550/0600 at yesterday’s close.
Axi chief global market strategist Stephen Innes said the conflicting indications in the market had impacted the performance of the local currency.
“It’s not a great set up for the ringgit and the 1.5 per cent 10-year US yield speed limit is a worrying thing for Asian foreign exchange risk,” he told Bernama.
He further explained that US bond yields will be the overriding factor for the ringgit and it will be a prudent to very cautious on ringgit risk until the market sees a top for US yields.
It was reported that stronger US economic data should push the benchmark 10-year US Treasury yield up to 1.9 per cent by year-end.
Meanwhile, the ringgit was easier against other major currencies.
It fell against the Singapore dollar to 3.0359/0395 from 3.0416/0460 yesterday, went down versus the British pound to 5.6267/6338 from 5.6470/6556, appreciated vis-a-vis the Japanese yen to 3.7544/7584 from 3.7774/7827 yesterday.
But, the local note strengthened against the euro to 4.8563/8627 from 4.8786/8854 yesterday. — Bernama
