Ringgit extends gains amid tariff policy uncertainty

 

KUALA LUMPUR: 

The ringgit opened higher against the US dollar on Tuesday as market sentiment remained cautious amid ongoing inconsistencies in US import tariff policies, with the White House reportedly planning new levies on semiconductors and pharmaceuticals.

At 8am, the local note rose to 4.4085/4.4215 versus the greenback from Monday’s close of 4.4100/4.4160.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the on and off tariff situation has led to difficulties in assessing the macroeconomic impact.

He added that the US Dollar Index (DXY) has dropped to 99.640 points, reflecting a shift in investor sentiments, with markets seeking alternative safe havens.

“Gold prices remain elevated, with spot gold at US$3,227.40 per ounce – up 23% from US$2,624.50 at the start of the year – suggesting investors are turning to the precious metal amid rising uncertainty,” he added.

Given the weaker DXY, Afzanizam expects the ringgit to hover between RM4.40 and RM4.41 today.

The ringgit also traded higher against several major currencies.

It rose against the Japanese yen to 3.0773/3.0868 from 3.0811/3.0855, strengthened versus the euro to 4.9975/5.0122 from 5.0199/5.0267 and was slightly higher vis-a-vis the British pound to 5.8073/5.8244 from 5.8097/5.8176.

Meanwhile, the local note traded mixed against Asean currencies.

The ringgit strengthened against the Thai baht to 13.1182/13.1745 from 13.1481/13.1754 and improved against the Singapore dollar to 3.3494/3.3595 from 3.3506/3.3556.

It was little changed versus the Indonesian rupiah at 262.5/263.5 from 262.6/263.2 and was flat against the Philippine peso at 7.72/7.75 from 7.72/7.74. - FMT