KUALA LUMPUR (Jan 9): The ringgit traded broadly higher against the US dollar at the opening on Monday (Jan 9), as weaker US economic data released last Friday triggered a significant decrease in US Treasury yields, said an analyst. 

At 9.01am, the local note was 185 basis points firmer at 4.3820/3860 versus the greenback from last Friday’s close at 4.4005/4070.

SPI Asset Management managing partner Stephen Innes said the weaker US dollar is supporting global risk-taking on market expectations that the US Federal Reserve would ease the pace of monetary policy sooner rather than later.

“[Also,] all eyes are still on China and how its reopening story continues to [filter] through domestic growth channels. As growth gradually returns to China, the ringgit should continue to strengthen,” he told Bernama. 

The ringgit was traded easier against a basket of major currencies.

It declined against the pound to 5.3057/3106 from 5.2159/2336 at last Friday’s close, and depreciated against the euro to 4.6717/6759 from 4.6254/6322.

The local currency also weakened versus the Singapore dollar to 3.2836/2871 from 3.2664/2717, and dropped vis-a-vis the yen to 3.3250/3283 from 3.2739/2793 previously.