Ringgit rebounds following 90-day tariff pause

 

KUALA LUMPUR: 

The ringgit ended firmer against the dollar today, snapping a three-day losing streak following US president Donald Trump’s 90-day pause in reciprocal tariffs for all countries except China.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the pause lifted market sentiment and paved the way for countries to negotiate with the US government and, perhaps, achieve a more favourable outcome.

“That has contributed to the rebound in risky assets in equities and currency markets,” he told Bernama.

It was reported that during the 90-day pause, tariffs will revert to a baseline rate of 10% even as negotiations with the US progress.

Downplaying the risk of further escalation, Trump sharply raised tariffs on Chinese goods from 104% to 125%.

At 6pm, the ringgit strengthened to 4.4670/4.4730 against the US dollar, marking a 0.58% gain from yesterday’s close of 4.4935/4990.

Meanwhile, the ringgit traded higher against major currencies today.

It appreciated against the Japanese yen to 3.0594/3.0639 from 3.0921/3.0964, increased against the euro to 4.9401/4.9467 from 4.9640/4.9700 and rose against the British pound to 5.7566/5.7644 from 5.7629/5.7700 yesterday.

The local note traded mixed against Asean currencies.

It inched up against the Indonesian rupiah at 265.5/265.9 from 266.3/266.7 and gained against the Philippine peso at 7.79/7.81 from 7.83/7.85.

However, it slid versus the Thai baht to 13.0618/13.0866 from 12.9915/13.0153 and was weaker against the Singapore dollar at 3.3361/3.3411 from 3.3349/3.3395 previously. - FMT