Ringgit opens stronger as US dollar weakens on tariff pause

 

KUALA LUMPUR: 

The ringgit opened firmer against the US dollar on Thursday, as the greenback weakened following the US President’s announcement of a 90-day pause in reciprocal tariffs, an economist said.

At 8.01am, the local currency stood at 4.4700/4.4850 against the greenback, compared to 4.4935/4.4990 at Wednesday’s close.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the pause in reciprocal tariffs for most countries pointed to improved sentiment in the currency market.

“This opens the door for negotiations, which could lead to better trade deals. As such, we can expect the ringgit and other currencies to perform better today,” he added.

It was reported that, during the 90-day pause on reciprocal tariffs for 75 countries negotiating with the US, tariffs will revert to a baseline rate of 10% as talks progress.

But despite expressing confidence in securing a strong deal with China and downplaying the risk of further escalation, Trump sharply raised tariffs on Chinese goods, increasing them from 104% to 125%.

The ringgit firmed against major currencies.

It strengthened against the Japanese yen to 3.0326/3.0432 from 3.0921/3.0964, appreciated against the euro to 4.8969/4.9133 from 4.9640/4.9700, and rose against the British pound to 5.7346/5.7538 from 5.7629/5.7700 yesterday.

The local note was mostly stronger against Asean currencies.

It gained against the Singapore dollar at 3.3279/3.3398 from 3.3349/3.3395, edged up against the Philippine peso at 7.79/7.7.82 from 7.83/7.85, and rose against the Indonesian rupiah to 264.9/265.9 from 266.3/266.7 yesterday.

However, it weakened against the Thai baht to 13.0778/13.1325 from 12.9915/13.0153. - FMT