Ringgit eases amid global economic uncertainties

 The tariff situation is unlikely to subside in the near-term, adding further pressure to risk currencies like the ringgit, says analyst.

KUALA LUMPUR:

 The ringgit retreated versus the US dollar at the close today due to renewed concerns over global economic uncertainties and mixed signals from the US monetary policy front, said an economist.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit saw some slight correction against the US dollar at RM4.3850 from the previous day’s closing.

“The degree of uncertainties remained, but traders may have taken some positions as the dollar index (DXY) appears to have reached an attractive level,” he told Bernama.

“Having said that, US president Donald Trump’s strong criticism of the US Federal Reserve (Fed) and its potential implications for the Fed’s independence in setting monetary policy remain key concerns,” Afzanizam added.

“The tariff situation is also unlikely to subside in the near-term, adding further pressure to risk currencies like the ringgit,” he said.

At 6pm, the local currency dropped to 4.3835/4.3905 against the greenback, from yesterday’s close of 4.3670/4.3735.

Back home, the ringgit traded mostly lower against a basket of major currencies.

It fell against the Japanese yen to 3.1206/3.1260 from 3.1046/3.1095 at yesterday’s close and declined against the British pound to 5.8590/5.8683 compared with 5.8513/5.8601 yesterday, but improved against the euro to 5.0362/5.0442 from 5.0408/5.0483 previously.

The local currency also slipped against Asean currencies.

It decreased against the Singapore dollar to 3.3523/3.3579 from 3.3515/3.3570 at the close yesterday, slid against the Philippine peso to 7.73/7.75 from 7.71/7.73 yesterday, depreciated against the Thai baht to 13.1930/13.2212 from 13.1914/13.2170 and eased against the Indonesian rupiah to 259.9/260.5, compared with 259.8/260.3 previously. - FMT