Ringgit Rises as US Dollar Falls on Tariff Concerns
Kuala Lumpur: Ringgit Strengthens Against US Dollar
The ringgit strengthened against the US dollar at the opening today as the greenback weakened after the US government upheld its decision to impose import tariffs on Canada, Mexico, and China, according to an analyst.
Ringgit Rises
At 8am, the ringgit rose to 4.4465/4.4585 against the greenback from 4.4635/4.4680 at Tuesday’s close.
Analyst’s View
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index (DXY) fell to 105.57, down more than 1%. “Concerns over higher tariffs could slow the economy and prompt the Federal Reserve to adopt a more dovish stance on monetary policy,” he noted. He said traders were also factoring in three rate cuts this year.
Trading Opportunities
“Developments over tariffs will be high on the agenda in the near term, as the situation remains fluid, creating trading opportunities,” he said. However, he opined that the ringgit would continue to trade cautiously, with USD/MYR oscillating around RM4.45 to RM4.47.
Ringgit Trades Mixed Against Other Currencies
The ringgit traded mostly lower against a basket of major currencies. It strengthened against the Japanese yen to 2.9675/2.9759 from 2.9956/2.9989 at Tuesday’s close but weakened against the British pound to 5.6884/5.7038 from 5.6789/5.6846 and fell against the euro to 4.7231/4.7358 from 4.6916/4.6963 yesterday. The local currency was mixed against Asean currencies.
Conclusion
In conclusion, the ringgit rose against the US dollar due to concerns over tariffs, which led to a weakening of the greenback. However, the ringgit traded mixed against other major currencies, with some currencies strengthening and others weakening.
Frequently Asked Questions
* What was the reason for the ringgit’s rise against the US dollar?
The ringgit rose due to concerns over tariffs, which led to a weakening of the greenback.
* How did the ringgit trade against other currencies?
The ringgit traded mostly lower against a basket of major currencies, with some currencies strengthening and others weakening.
* What is the outlook for the ringgit?
The ringgit is expected to continue trading cautiously, with USD/MYR oscillating around RM4.45 to RM4.47.