Ringgit Finds a Difficult Road, Do You Want to Break Below RM4.60?

<p>&nbsp;This morning, the ringgit opened higher against the US dollar due to significant weakness following a very strong US 5-year bond auction and a significant decline in the US Core Personal Consumption Expenditure (Core PCE) price index in November.</p><p><br /></p><p>At exactly 10am this morning, the ringgit was at the level of RM4.6100 from yesterday's close at around RM4.6268 against the US dollar.</p><p><br /></p><p>According to SPI Director of Asset Management, Stephen Innes said that the strong US bond auction led to a decline in the US 10-year Treasury yield falling below 3.80%.</p><p><br /></p><p>He also said that the sentiment serves as an indicator for investors to expect a significant interest rate cut by the Federal Reserve (Fed) in the coming year. The development will continue to have a positive effect on the ringgit.</p><p><br /></p><p><br /></p><p>Innes also looks to maintain his expectation that the USD/MYR exchange rate will trade below RM4.60 in early 2024 if US Treasury yields continue to decline.</p><p><br /></p><p>Meanwhile, the ringgit traded lower against a group of major currencies.</p><p><br /></p><p>It slipped against the Japanese yen to 3.2589 from 3.2453 on Wednesday, eased against the euro to 5.1251 from 5.1152 and fell against the British pound to 5.9030 from 5.8862 yesterday.</p><p><br /></p><p>However, the local currency rose against other Asean currencies.</p><p><br /></p><p>It rose against the Singapore dollar to 3.4956 from 3.5001 and rose against the Philippine peso to 8.28 from 8.31 on Wednesday.</p>