Ringgit opens lower as tariff concerns weigh on sentiment

 

KUALA LUMPUR: 

The ringgit opened lower against the US dollar on Tuesday as investors stayed on the sidelines amid concerns over reciprocal tariff rates set to take effect on April 9, prompting a more cautious tone in the market.

At 8.05am, the local note slipped to 4.4900/4.5100 against the greenback from Monday’s close of 4.4775/4.4840.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index (DXY) had risen steadily to 103.26, reflecting stronger demand for the safe-haven currency. against the US dollar yesterday, closing at RM4.4835,” he noted.

He added that technical charts indicated the ringgit was approaching 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.

The ringgit traded higher against several major currencies.

It strengthened against the Japanese yen to 3.0385/3.0522 from 3.0655/3.0704, rose against the euro to 4.9044/4.9263 from 4.9100/4.9172, and appreciated against the British pound to 5.7207/5.7462 from 5.7491/5.7575.

However, the local note was mostly lower against Asean currencies.

It weakened against the Thai baht to 12.9350/13.0080 from 12.9128/12.9408, fell versus the Indonesian rupiah to 266.9/268.1 from 266.1/266.6, and slipped against the Philippine peso to 7.81/7.85 from 7.79/7.81.

The ringgit, however, edged up against the Singapore dollar to 3.3210/3.3360 from 3.3228/3.3281. - FMT