THE ringgit is expected to trade cautiously against the US dollar next week, as investors continue to monitor external developments — particularly the potential impact of proposed US tariffs and escalating geopolitical risks.
In its research note, Kenanga Investment Bank Bhd said the ringgit could find some support from Malaysia’s stable domestic economic fundamentals and a softening US dollar.
“President Donald Trump’s proposed tariffs on semiconductors and pharmaceuticals are expected to further dampen sentiment towards risk assets,” the bank said, according to Bernama. “At the same time, investors are closely watching mounting pressure on the BRICS bloc and signs of strain in US-China trade negotiations.”
It added, “Trump’s swift policy announcements and sensational headlines continue to fuel market uncertainty.”
This past week, the ringgit traded higher in a range of 4.23 to 4.24 against the greenback, supported by weaker-than-expected US employment data, which dragged down the value of the US dollar.
On a week-on-week basis, the ringgit ended stronger against the US dollar at 4.2420/2480 compared to 4.2750/2815 the previous Friday.
However, the local unit depreciated against most other major currencies.
It fell against the Japanese yen to 2.8720/8763 from 2.8407/8452, declined against the British pound to 5.7034/7114 from 5.6208/6293, and weakened against the euro to 4.9381/9451 from 4.8752/8826.
The ringgit also slipped against regional currencies, including the Singapore dollar (3.3014/3064 from 3.2907/2960), Thai baht (13.1173/1419 from 13.0058/0319), Indonesian rupiah (260.3/260.8 from 258.8/259.4), and Philippine peso (7.43/7.44 from 7.35/7.36). - August 9, 2025
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