KUALA LUMPUR (March 9): Despite strengthened oil prices, the ringgit fell 0.62% to 4.1325 this morning against the greenback as the US dollar gained alongside US Treasury yields.
Bloomberg data showed the ringgit opening weaker at 4.1115 from yesterday's close at 4.1070.
Axi chief global market strategist Stephen Innes told theedgemarkets.com that the US yields and the aggressive reprising along the US Federal Reserve (Fed) curve sooner, faster and higher are really behind the US dollar pivot.
“Yields are more important than oil prices to the ringgit as the Malaysian Government Securities (MGS) inflow is a bigger driver of sentiment than flows into the oil and gas (O&G) counter on the [FBM] KLCI,” he said.
He moved his year-end USD/MYR forecast from 4.00 to 4.25 as he thinks the US dollar could remain strong due to a rotation out of the Asian equity market into US markets.
At the time of writing today, Brent crude oil prices were 0.41% higher at US$68.52 (RM282.82), according to Bloomberg.