Ringgit strengthens to more than 2 year high

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KUALA LUMPUR (March 28): The ringgit (MYR) strengthened to new levels, appreciating to its lowest in more than two years as a slide in U.S. Treasury yields overnight fueled demand for carry trade, said Bloomberg.

DBS Group Research in a note today wrote that the US Dollar  index had also settled lower around 89.3 yesterday.

The ringgit strengthened to 3.8585. It has been hovering between 3.8765 and 3.8565 against the greenback today.

"The drop in UST yields is boosting MYR more than other regional FX as foreign positioning in the currency and domestic bonds remains light, says Stephen Innes, head of trading for Asia-Pacific at Oanda Corp," Bloomberg wrote.

Bloomberg also cited Winson Phoon, head of fixed-income research at Maybank Kim Eng Securities in Singapore, who said yields are expected to be remain in a narrow range over the next month as Malaysia’s general election approaches.

Meanwhile, the ringgit also firmed against the Singapore dollar, up 0.46% to 2.95.