THE ringgit opened lower against the US dollar on Tuesday, as investors adopted a cautious stance ahead of the reciprocal tariff rates set to take effect on April 9, which has caused concerns in the market.
At 8:05 am, the local currency eased to 4.4900/5100 against the greenback, compared to Monday’s closing of 4.4775/4840.
Bank Muamalat Malaysia Bhd’s chief economist, Dr Mohd Afzanizam Abdul Rashid, noted that the US Dollar Index (DXY) had risen steadily to 103.26, reflecting stronger demand for the safe-haven currency.
“The ringgit declined by 1.04 per cent against the US dollar yesterday, closing at RM4.4835,” he told Bernama.
He added that technical charts suggested the ringgit was nearing oversold territory, with current support and resistance levels at RM4.4463 and RM4.5293, respectively.
“It appears the ringgit will remain weak in the near term due to concerns over US reciprocal tariffs and whether countries can secure better terms with the US. These uncertainties are likely to keep traders and investors in a cautious stance,” he said.
However, the ringgit showed strength against several major currencies.
It strengthened against the Japanese yen to 3.0385/0522 from 3.0655/0704, rose against the euro to 4.9044/9263 from 4.9100/9172, and appreciated against the British pound to 5.7207/7462 from 5.7491/7575.
Meanwhile, the ringgit was mostly lower against ASEAN currencies, weakening against the Thai baht to 12.9350/13.0080 from 12.9128/9408, falling against the Indonesian rupiah to 266.9/268.1 from 266.1/266.6, and slipping against the Philippine peso to 7.81/7.85 from 7.79/7.81.
The local currency edged up against the Singapore dollar, trading at 3.3210/3360, compared to 3.3228/3281 previously. - April 8, 2025
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