THE ringgit continued its positive momentum against the US dollar today, bolstered by a weakening greenback amid growing uncertainties surrounding the US government's import tariffs, which have led to diminished business and consumer confidence.
At 8 am, the local currency rose by 170 pips to 4.4100/4250 against the US dollar, compared to Wednesday's closing rate of 4.4270/4320.
Bank Muamalat Malaysia Bhd Chief Economist Dr. Mohd Afzanizam Abdul Rashid, said today the US imposed tariffs could result in reduced spending by both businesses and households, which may significantly harm US economic growth.
“This scenario could contribute to a pullback in economic activity, severely affecting growth in the US,” he said.
He also pointed out that some of the major investment banks in the US are now considering the potential for a recession as a consequence of the tariffs.
Additionally, Afzanizam noted that the decision by Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) to maintain the Overnight Policy Rate (OPR) at 3.00% is likely to influence market sentiment.
“What is more important is the latest assessment by MPC members regarding the global economic outlook and their expectations for 2025,” he told Bernama.
Given the current market conditions, he speculated that the USD/MYR exchange rate could approach its support level of 4.37.
Meanwhile, the ringgit traded lower against several other major currencies.
It saw a slight decline against the Japanese yen, edging down to 2.9619/9722 from 2.9614/9647 at Wednesday’s close.
The local currency also weakened against the British pound, falling to 5.6840/7034 from 5.6825/6889, and dropped against the euro to 4.7602/7763 from 4.7409/7462.
In contrast, the ringgit saw gains against several ASEAN currencies.
It strengthened against the Indonesian rupiah to 270.3/271.3 from 271.3/271.8, rose against the Philippine peso to 7.69/7.72 from 7.72/7.73, and gained against the Thai baht to 13.1211/1767 from 13.1545/1756.
However, it fell slightly against the Singapore dollar, dipping to 3.3128/3246 from 3.3126/3166. - March 6, 2025
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