KUALA LUMPUR: The ringgit was higher against the US dollar US dollar early Thursday, as the local note remained attractive due to its better position than regional peers to withstand a steeper US yield curve, a dealer said.
At 9 am(0100gmt), the local unit stood at 4.0650/0680 from 4.071/0770 at Wednesday’s closing.
The primary focus overnight was the US yield curve which continued to steepen as US 10-year yields were trading at a nine-month high in the wake of the Tax Reform Bill.
OANDA Head of Trading Asia-Pacific, Stephen Innes, said the the ringgit has positioned itself well compared to its peers.
However, holiday thinned-trading conditions had long-term investors staying on to the sidelines until early 2018 which was likely to temper optimism, he said.
“But the ringgit remains constructive, and one can only suspect year-end market conditions are holding the local note back from testing this year’s ringgit against the dollar lows,” he said in a statement.
The ringgit was traded mostly higher against a basket of major currencies.
The local note gained higher against the Singapore dollar to 3.0234/0263 from Wednesday’s 3.0247/0310 and traded higher against the British pound at 5.4333/4393 from 5.4515/4607 on Wednesday.
It eased against the euro to 4.8268/8308 from Wednesday’s close of 4.8188/8264, It was lower against the yen to 3.5888/5917 from 3.5976/6035 Wednesday. Bernama