Ringgit Rises for 5th Day as US Tariff Uncertainty Weighs

Uncertainties Over US Tariff Policies Prompt Traders to Steer Clear of Riskier Assets

The ringgit opened higher against the US dollar for the fifth consecutive day as uncertainties over US tariff policies prompted traders and investors to steer clear of riskier assets, an analyst said.

Ringgit Appreciates to 4.4185/4315 Against the Greenback

At 8 am, the local note further appreciated to 4.4185/4315 against the greenback from 4.4230/4270 at Thursday’s close.

Trump’s Move to Delay Tariffs on Mexico and Canada Eases Near-Term Trade Frictions

On Thursday, President Donald Trump signed executive actions delaying for nearly a month tariffs on many products from Mexico and Canada covered under the US-Mexico-Canada Agreement (USMCA) free trade treaty.

Analyst Sees Temporary Reprieve in Trade Tensions Supporting Ringgit’s Near-Term Outlook

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the move eases near-term trade frictions, boosting investor sentiment towards emerging market currencies, including the ringgit. He added that Trump’s renewed rhetoric labelling Canada and India as ‘high-tariff nations’ signalled persistent trade policy uncertainty, which could introduce volatility into global markets.

Bank Muamalat Malaysia Bhd Chief Economist Sees Ringgit Trading within a Narrow Range

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Bank Negara Malaysia’s (BNM) Monetary Policy Committee appeared cautious about the global economy but seemed inclined to keep the overnight policy rate (OPR) steady in the near term.

Ringgit Strengthens Against Major Currencies, ASEAN Counterparts

The ringgit also traded higher against a basket of major currencies. It strengthened against the Japanese yen to 2.9833/9922 from 2.9940/9969 at Thursday’s close, firmed against the British pound to 5.6919/7087 from 5.6964/7015, and rose against the euro to 4.7662/7803 from 4.7773/7816. The local currency was mostly higher against ASEAN currencies.

Conclusion

The ringgit’s fifth consecutive day of appreciation is a sign of cautious optimism in the face of US tariff uncertainty. While the move to delay tariffs on Mexico and Canada eases near-term trade frictions, persistent policy uncertainty remains a concern. The ringgit’s performance will likely be closely watched as markets navigate this complex global economic landscape.

FAQs

* What prompted the ringgit’s fifth consecutive day of appreciation?
+ Uncertainties over US tariff policies prompted traders and investors to steer clear of riskier assets.
* What is the current exchange rate of the ringgit against the US dollar?
+ 4.4185/4315
* What is the impact of Trump’s move to delay tariffs on Mexico and Canada on the ringgit?
+ The move eases near-term trade frictions, boosting investor sentiment towards emerging market currencies, including the ringgit.
* What is the outlook for the ringgit in the near term?
+ A temporary reprieve in trade tensions supports a more constructive outlook for the ringgit.