Ringgit slightly firmer against US dollar amid cautious sentiments over tariffs

Local note could remain under pressure given strong correlation with the yuan following White House’s confirmation of 104% tariff on China

9:33 AM MYT

 

KUALA LUMPUR — The ringgit edged higher against the US dollar in early trade today, recovering slightly on technical correction after recent losses, amid a mixed overnight performance by the greenback.

At 8.05 am, the local currency inched up to 4.4875/5050 versus the dollar, compared with yesterday’s close of 4.4885/4930.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the shock from newly announced US tariffs continues to dominate market sentiment.

He noted that White House officials have confirmed a 104% on selected Chinese goods will proceed as planned, while Beijing is expected to retaliate.

“At this juncture, the degree of uncertainty surrounding the impact of a potential trade war on the global economy will be the key focus,” he told Bernama.

“A sharp tariff hike on China would hurt its export-driven industries, prompting more stimulus measures to support the economy.

“On that note, the ringgit could remain under pressure, given its strong correlation with the Chinese yuan — at 78% since 2015,” he added.

The ringgit was weaker against most major currencies this morning.

It slipped against the Japanese yen to 3.0785/0907 from 3.0501/0533, eased versus the euro to 4.9246/9438 from 4.9005/9055, and declined against the British pound to 5.7368/7592 from 5.7210/7268.

However, the local note was mostly firmer against ASEAN currencies.

It strengthened against the Thai baht to 12.8552/9139 from 12.8898/9094, edged up against the Indonesian rupiah to 265.6/266.8 from 265.7/266.1, and rose against the Singapore dollar to 3.3169/3304 from 3.3224/3259.

The ringgit was little changed against the Philippine peso at 7.83/7.86 from 7.83/7.84 previously. – April 9, 2025

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