The US move to impose additional tariffs on 60 economies over forced labour signals that protectionist trade policies will continue to shape the global economy, raising fresh concerns, says an analyst.
At 6pm, the local currency depreciated to 3.9955/3.9990 against the greenback from last Friday’s close of 3.9625/3.9670.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the US trade representative, in his latest press statement, has identified the policies and practices of 60 economies that would face an increase in tariffs.
“This suggests that trade protectionist policies will continue to shape the global economy, which would result in a higher cost of doing business for US businesses and potentially lead to further reconfiguration of the global supply chain,” he told Bernama.
The ringgit also traded lower against a basket of major currencies.
It eased against the British pound to 5.3727/5.3775 from 5.3165/5.3225, slid against the euro to 4.6400/4.6440 from 4.6127/4.6180, and dipped versus the Japanese yen to 2.5005/2.5027 from 2.4874/2.4904 at last Friday’s close.
The local currency traded lower against regional peers.
It retreated versus the Singapore dollar to 3.1164/3.1193 from 3.1010/3.1048, and eased marginally against the Thai baht to 12.1825/12.1988 from 12.1732/12.1926 previously.
It was lower against the Indonesian rupiah at 222.3/222.7 from 221.6/221.9, and fell against the Philippine peso to 6.47/6.48 from 6.43/6.44 at last Friday’s close. - FMT
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