THE ringgit saw an uptick against the US dollar during today’s early trading, buoyed by a dip in the greenback following the US government’s decision to uphold its import tariffs on Canada, Mexico, and China, an analyst reported.
At 8 a.m., the ringgit was valued at 4.4465/4585 against the US dollar, improving from 4.4635/4680 at Tuesday's closing.
Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, said today that the US Dollar Index (DXY) fell to 105.57, a decline of over 1%.
He attributed the weakening of the greenback to growing concerns that increased tariffs could slow down the US economy, potentially prompting the Federal Reserve to adopt a more dovish approach to monetary policy.
"Concerns over higher tariffs could impact the economy and lead the Federal Reserve to adjust its monetary stance," he said in a statement to Bernama.
Afzanizam added that market participants are currently factoring in the possibility of three interest rate cuts this year.
"With the situation surrounding tariffs remaining uncertain, it will be a key topic of discussion in the near term, presenting trading opportunities," he said.
However, he cautioned that the ringgit is expected to maintain a cautious trading pattern, with the USD/MYR likely to fluctuate within a range of RM4.45 to RM4.47.
Despite the ringgit’s strengthening against the US dollar, it experienced mixed movements against other major currencies.
The ringgit appreciated against the Japanese yen, rising to 2.9675/9759 from 2.9956/9989 at Tuesday’s close.
However, it weakened against the British pound, dipping to 5.6884/7038 from 5.6789/6846, and also fell against the euro, which was priced at 4.7231/7358, compared to 4.6916/6963 previously.
In regional currency markets, the ringgit had a mixed performance against ASEAN currencies. It lost ground to the Singapore dollar, dropping to 3.3227/3322 from 3.3203/3242 on Tuesday, and also weakened against the Thai baht, slipping to 13.1963/2453 from 13.1853/2057.
On the other hand, the ringgit strengthened against the Indonesian rupiah, rising to 270.3/271.2 from 271.3/271.8, and also gained against the Philippine peso, which stood at 7.72/7.74, up from 7.69/7.72 the day before. – March 5, 2025
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