Traders and investors have become more 'edgy', with fuel prices expected to remain elevated as a truce in the Iran war remains elusive.
At 6pm, the local currency depreciated to 4.0095/4.0140 against the greenback from Wednesday’s close of 3.9955/3.9990.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said elevated fuel prices are expected to exert upward pressure on global inflation as a truce in the Iran war remains elusive.
“Hence, traders and investors have become more edgy, with fuel prices expected to remain elevated.
“In addition, the US’s trade protectionist policies are here to stay, leading to further anxiety in market sentiment,” he told Bernama.
On June 2, the Office of the United States Trade Representative (USTR) published its findings under the Section 301 investigation into alleged forced labour involving Malaysia and proposed a 10% tariff on Malaysian goods upon the expiry of the tariff on July 24, imposed under Section 122 of the Trade Act 1974.
The investment, trade and industry ministry noted that no final tariff determination has been made against Malaysia, as the proposed 10% tariff remains subject to the USTR’s ongoing investigation and formal determination.
The ringgit also traded lower against a basket of major currencies.
It eased against the British pound to 5.3872/5.3932 from 5.3727/5.3775, slid against the euro to 4.6610/4.6663 from 4.6400/4.6440, and slipped versus the Japanese yen to 2.5081/2.5111 from 2.5005/2.5027 at yesterday’s close.
The local currency traded mostly lower against regional peers.
It retreated versus the Singapore dollar to 3.1241/3.1279 from 3.1164/3.1193, eased against the Thai baht to 12.2708/12.2903 from 12.1825/12.1988, and weakened against the Philippine peso to 6.50/6.52 from 6.47/6.48.
However, it was higher against the Indonesian rupiah at 222.1/222.4 versus 222.3/222.7 at Wednesday’s close. - FMT
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