KUALA LUMPUR: The ringgit declined against the US dollar in the early session today on weaker demand for the local note following a surge in US Treasury yield.
At 9.05am, the local unit traded at 4.0820/0870 against the greenback from 4.0790/0820 on Monday's closing.
A dealer said higher US manufacturing activity has encouraged some investors to shift towards US dollar-denominated bonds, causing the benchmark 10-year rate to increase more than eight basis points.
Malaysia, on the other hand, recorded a lower manufacturing activity with the headline Nikkei Malaysia Manufacturing Purchasing Managers' Index (PMI) down to 47.2 in March from February's reading of 47.6.
Meanwhile, the ringgit was higher against a basket of major currencies.
It rose against the Singapore dollar to 3.0108/0156 from 3.0114/0141 and improved against the Japanese yen to 3.6656/6711 from 3.6744/6781.
The ringgit was higher against the British pound to 5.3327/3413 from 5.3419/3474 and rose against the euro to 4.5727/5803 from 4.5832/5882. - Bernama
In a morning note, Ambank research maintained its view that there is more room for global monetary policy easing to support growth due to weak inflationary pressure.
"The global manufacturing PMI in March came in at the same level as in February at 50.6.
"The survey highlighted the overall performance in March remained weak as new orders stagnated while new export business contracted," it said.
With regard to the Reserve Bank of Australia's monetary policy meeting today, Ambank said it expects the central bank to keep the policy rate unchanged at 1.50%.
The research house predicts the ringgit to trade between a support level of 4.0630 and 4.0702 while resistance is pinned at 4.0916 and 4.0992.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
