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KUALA LUMPUR – The ringgit opened lower against the US dollar today as the greenback strengthened following higher US Treasury yields, said analysts.
At 9am, the local note slipped to 4.5520/5555 against the greenback from 4.5400/5465 at yesterday’s close.
“The US dollar is trading firmer across the board due to lower-than-expected US jobless claims that pushed US yields higher, increasing the chance of an additional US Federal Reserve rate hike beyond July,” said SPI Asset Management managing director Stephen Innes.
“As markets anticipate less growth but more easing in China, this could weaken the Chinese yuan and drag the ringgit down given the close correlation of the local unit and the Chinese yuan.”
Meanwhile, the FTSE Bursa Malaysia KLCI (FBM KLCI) opened slightly higher today, tracking Wall Street’s weaker performance overnight amidst mixed reactions to corporate earnings results, a dealer said.
At 9.10am, the FBM KLCI rose 1.59 points to 1,408.28 from 1,406.69 at yesterday’s close.
The key index opened 0.79 of-a-point firmer at 1,407.48.
However, the broader market was negative as decliners beat advancers 195 to 130, while 269 counters were unchanged, 1,700 untraded, and 14 others suspended. – Bernama, July 21, 2023