THE ringgit began trading on a stronger footing on Tuesday, continuing its upward momentum against the US dollar amid cautious market sentiment driven by growing uncertainty over new import tariff measures being considered by advanced economies.
At 8:00 am, the local currency strengthened to 4.4085/4215 against the greenback, compared to Monday’s closing level of 4.4100/4160.
Bernama cited Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid saying market volatility has been fuelled by reports that the White House is planning to impose new tariffs on critical sectors, including semiconductors and pharmaceuticals.
"The confusion surrounding the tariff policy has created difficulty in assessing its macroeconomic impact," said Dr Afzanizam, noting that investor sentiment has shifted markedly as a result.
The US Dollar Index (DXY) also reflected this shift, slipping to 99.640 points, indicating that investors are seeking safer assets amid rising global economic uncertainty.
“Gold prices have remained elevated, with the spot price of gold currently at US$3,227.40 per ounce — a 23 per cent rise from US$2,624.50 at the start of the year,” he added. “This suggests that investors are turning to precious metals in the face of growing unpredictability.”
In light of the weakening DXY, Dr Afzanizam expects the ringgit to trade within the range of RM4.40 to RM4.41 against the US dollar throughout the day.
The ringgit also posted gains against several other major currencies. It rose against the Japanese yen to 3.0773/0868 from 3.0811/0855 on Monday and advanced against the euro to 4.9975/5.0122 from 5.0199/0267. The local currency also edged higher against the British pound, trading at 5.8073/8244 compared to 5.8097/8176 previously.
Meanwhile, the ringgit showed a mixed performance against regional ASEAN currencies.
It appreciated against the Thai baht to 13.1182/1745 from 13.1481/1754 and improved slightly against the Singapore dollar to 3.3494/3595 from 3.3506/3556.
The ringgit was little changed against the Indonesian rupiah at 262.5/263.5 from 262.6/263.2 and remained flat against the Philippine peso at 7.72/7.75 from 7.72/7.74.
The broader strength of the ringgit comes as traders and analysts closely monitor the evolving global trade landscape, with particular attention on developments from Washington, which could influence broader market movements in the days ahead. - April 15, 2025
