THE ringgit traded broadly higher against the US dollar at the opening today, as weaker US economic data released last Friday triggered a significant decrease in US Treasury yields, SPI Asset Management managing partner Stephen Innes said.

At 9.01am, the local note was 185 basis points firmer at 4.38/39 versus the greenback from Friday’s close of 4.40/41.

Innes said the weaker US dollar is supporting global risk-taking on market expectations that the US Federal Reserve (Fed) would ease the pace of monetary policy sooner rather than later.

“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 said.

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

It declined against the British pound to 5.31 from 5.22/23 at Friday’s close and depreciated against the euro to 4.67/68 from 4.63.

The local currency also weakened versus the Singapore dollar to 3.28/29 from 3.27 and dropped vis-a-vis the Japanese yen to 3.33 from 3.27/28 previously. – Bernama, January 9, 2023.