Ringgit rises amid weaker greenback, US-China trade tensions

 The trade war is likely to be protracted, leading to cautious sentiment in the currency market, says analyst.

KUALA LUMPUR:

 The ringgit closed stronger against the US dollar on weaker greenback demand, amid a decline in investor confidence due to ongoing US-China trade tensions and a lack of progress in negotiations.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the ringgit gained about 0.32% today amid the uncertainties over the US tariff spat with China and other global trading partners.

“It seems China has demanded that the US revoke all the unilateral tariffs.

“Such a tough stance suggests the trade war is likely to be protracted, leading to cautious sentiment in the currency market,” he told Bernama.

At 6pm, the local unit stood at 4.3695/4.3750 against the greenback, improving from yesterday’s close of 4.3880/4.3925.

Back home, the ringgit strengthened against a basket of major currencies.

It rose against the Japanese yen to 3.0670/3.0710 from 3.0925/3.0959 at yesterday’s close, gained against the British pound to 5.8127/5.8201 from 5.8457/5.8517, and advanced versus the euro to 4.9738/4.9801 from 5.0102/5.0154.

Against regional currencies, the ringgit also traded higher.

It firmed against the Singapore dollar to 3.3307/3.3354 from 3.3478/3.3515, and strengthened against the Thai baht to 13.0632/13.0874 from 13.1251/13.1457.

The local note also increased against the Philippine peso to 7.72/7.74 from 7.75/7.77 and appreciated against the Indonesian rupiah to 258.9/259.4 from 260/260.5. - FMT