Short-term rates are expected to remain steady today on Bank Negara Malaysia's (BNM) continuous intervention to absorb excess liquidity from the financial system.

The central bank estimated today's liquidity at RM29.25 billion in the conventional system and RM11.37 billion in Islamic funds.

BNM will also undertake Qard tenders of RM1.6 billion for eight days, RM1.2 billion for 14 days, RM500 million for 22 days and RM300 million for 31 days.

It will also conduct a RM1 billion conventional money market tender for eight days.

At 4pm, BNM will conduct up to RM28 billion conventional overnight tender and RM7.8 billion for overnight Qard.

Meanwhile, the ringgit opened higher against the US dollar today on better demand following Bank Negara Malaysia's (BNM) new measures, effective today, to encourage more domestic trade of the ringgit.

At 9.05am, the local unit strengthened to 4.4470/4500 against the greenback from the 4.4500/4550 recorded last Friday.

In a statement last Friday, the central bank said exporters could only retain up to 25 percent of export proceeds in foreign currency, while higher balances would need its approval.

BNM said foreign currency arising from conversion of export proceeds would be used to ensure continuous liquidity of foreign currency in the onshore market.

"All ringgit proceeds from exporters can earn a higher deposit rate of 3.25 percent per annum," it added.

Meanwhile, the ringgit traded mostly higher against other major currencies.

It rose against the Singapore dollar to 3.1205/1235 from 3.1274/1327 last week and improved against the yen to 3.9064/9093 from 3.9128/9179.

Against the euro, it was higher at 4.6943/6979 from 4.7375/7432, but declined against the British pound at 5.6410/6462 from 5.6057/6137 last Friday.

- Bernama