2 days Ago
KUALA LUMPUR: The ringgit closed marginally higher against the US dollar today, driven by a weaker greenback amid global trade tensions, said an analyst. At 6pm, the local note appreciated to 4.4050/4095 versus the greenback from Wednesday’s close of 4.
4085/4135. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the situation with the US tariff remains highly fluid as Chinese President Xi Jinping visited the ASEAN countries this week. "The weakening of the greenback was surprising as the US dollar, a safe haven currency, would normally thrive during heightened uncertainties.
"Such dynamics would complicate how traders and investors would position themselves in times like this,” he told Bernama. SPI Asset Management managing partner Stephen Innes said traders were on a wait-and-see mode for the ringgit today. He noted that the greenback has found some footing overnight, supported by a renewed tilt toward safe-haven US bonds which marked the first real sign of bond market strengthening after weeks of volatility.
"Additionally, the positive performance was attributed to US Federal Reserve chair Jerome Powell’s unexpectedly hawkish tone, which pushed yields higher and lent the greenback a modest bid,” he said. On Asian currencies, Innes said the trade war centered on China and the 245 per cent tariff imposed by the United States creates bad optics for regional currencies with tight export links to Beijing. On the other hand, Mohd Afzanizam said the Japanese yen could be in the sweet spot as the Bank of Japan (BOJ) is expected to raise its benchmark interest rates at its next monetary policy meeting from April 30 to May 1, 2025.
"Japanese labour unions are asking for more pay rise this year and this could sustain a higher inflation rate which necessitates the BOJ’s rate hike decision,” he added. Meanwhile, the ringgit was traded mostly higher against a basket of major currencies. It gained versus the Japanese yen to 3.
0849/0883 from 3.0861/0898 at the close on Wednesday amd appreciated against the British pound to 5.8331/8391 from 5.
8488/8554 previously, but eased vis-a-vis the euro to 5.0102/0154 from 5.0072/0129 yesterday.
At the same time, the local note performed better against most ASEAN currencies. It edged up versus the Singapore dollar to 3.3562/3601 from 3.
3537/3578 at Wednesday’s close, strengthened against the Thai baht to 13.2211/2417 from 13.2547/2773 yesterday and firmed vis-a-vis the Indonesian rupiah to 261.
6/262.0 from 261.8/262.
2 previously. However, the ringgit weakened against the Philippine peso at 7.77/7.
79 compared to 7.76/7.78 previously.
- Bernama.
