Ringgit ends lower on geopolitical risks, US tariffs

 Lingering uncertainty over US trade policy following the ruling by the US Supreme Court has kept investors cautious, says analyst.

KUALA LUMPUR:

 The ringgit closed mostly higher against Asean currencies today but eased against the US dollar and other major currencies as traders remained cautious amid geopolitical risks and uncertainties over US tariffs.

It was reported that US and Iranian officials met in Geneva, Switzerland, yesterday for a third round of indirect nuclear talks, but the discussions ended without a deal.

Another round of talks is set to be held in Vienna next week.

Besides, lingering uncertainty over US trade policy following the ruling by the US Supreme Court has kept investors cautious.

On the latest development, the investment, trade and industry minister Johari Ghani will liaise with his US counterpart regarding the implications of the US Supreme Court ruling on the agreement on reciprocal trade (ART) and the new tariffs announced by US president Donald Trump.

Madani government spokesman Fahmi Fadzil, who is the communications minister said the Cabinet would await the outcome of the discussions before making any decision.

Malaysia has signed the ART with the US but has not ratified the agreement.

Commenting on the ringgit’s performance today, Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said that due to recent developments, the ringgit remained in a narrow range versus the US dollar today.

“The US dollar/ringgit was oscillating between RM3.8848 and RM3.8935 today,” he told Bernama.

At 6pm, the ringgit eased to 3.8910/3.8960 versus the greenback from yesterday’s close of 3.8865/3.8925.

At the close, the ringgit traded mostly lower against a basket of major currencies.

It weakened versus the euro to 4.5898/4.5957 from 4.5853/4.5924 at yesterday’s close and tumbled against the Japanese yen to 2.4930/2.4963 from 2.4902/2.4942 yesterday.

However, it edged up vis-a-vis the British pound to 5.2470/5.2538 from 5.2573/5.2654 yesterday.

However, the local currency traded mostly higher against its Asean peers.

The ringgit edged up versus the Singapore dollar to 3.0742/3.0784 from 3.0755/3.0805 at yesterday’s close, gained against the Indonesian rupiah to 231.7/232.2 from 231.9/232.3 yesterday and strengthened vis-a-vis the Thai baht to 12.5153/12.5370 from 12.5169/12.5435 previously.

However, it was slightly down versus the Philippine peso at 6.75/6.76 from 6.74/6.76 yesterday. - FMT