Business

Ringgit opens lower as us dollar gains after trump’s tariff move

Currency market will be more defensive as US tariff fears and its impact on global growth would lead to higher demand for safe haven currencies such as the US dollar

Updated 1 year ago · Published on 03 Apr 2025 9:35AM

Ringgit opens lower as us dollar gains after trump’s tariff move
Tariffs can be harmful to trade and global economic growth – April 3, 2025

THE ringgit opened slightly lower against the US dollar today as the greenback strengthened after US President Donald Trump announced global reciprocal tariffs.

At 8 am, the ringgit inched down to 4.4515/4785 against the greenback from yesterday’s close of 4.4510/4565.

It was reported that Trump will impose reciprocal tariffs, with the White House releasing a list of roughly 100 countries and their respective tariff rates that the US would be imposing, including on Malaysia.

Malaysia will face 24 per cent reciprocal tariff by the US effective April 9.

Bernama reported, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the currency market will be more defensive as US tariff fears and its impact on global growth would lead to higher demand for safe haven currencies such as the US dollar.

“There could be merits to this but this can be harmful to trade and global economic growth.

“We opine that the best platform would be via the World Trade Organisation (WTO) to mediate in any trade dispute,” he told Bernama, noting that the ringgit might go beyond its RM4.45 immediate resistant level.

The ringgit traded lower against major currencies.

It edged down against the Japanese yen to 3.0086/0272 from 2.9783/9821 and weakened against the euro to 4.8530/8825 from 4.8098/8157 and decreased against the British pound to 5.8061/8413 from 5.7632/7703 yesterday.

The local note was mixed against ASEAN currencies.

It increased against the Thai baht to 12.9608/13.0489 from 13.0260/0490 and gained against the Singapore dollar to 3.3067/3270 from 3.3150/3193.

However, it remained flat against the Indonesian rupiah at 266.3/268.0 from 266.3/266.7 and was unchanged against the Philippine peso at 7.78/7.83 from 7.78/7.79 previously. – April 3, 2025

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