Kuala lumpur: The ringgit ended lower against the US dollar on Thursday due to cautious sentiment over rising fuel prices, unresolved geopolitical tensions, and global trade uncertainties. At 6 pm, the local currency weakened to 4.0095/0140 against the greenback from Wednesday's close of 3.9955/9990.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid indicated that elevated fuel prices are likely to increase global inflation, as a truce between the United States and Israeli forces and the Iranian military remains elusive. This situation has led to increased unease among traders and investors, with the expectation that fuel prices will stay elevated.
Moreover, the continuation of the United States' trade protectionist policies adds to the anxiety in market sentiment. On June 2, 2026, the Office of the United States Trade Representative (USTR) released findings under the Section 301 investigation into alleged forced labor involving Malaysia, proposing a 10 percent tariff on Malaysian goods upon the expiration of the tariff imposed under Section 122 of the Trade Act 1974 on July 24, 2026. The Ministry of Investment, Trade and Industry (MITI) noted that no final tariff determination has been made against Malaysia, as the proposed tariff remains subject to the USTR's ongoing investigation and formal determination.
The ringgit also weakened against a basket of major currencies. It eased against the British pound to 5.3872/3932 from 5.3727/3775, slid against the euro to 4.6610/6663 from 4.6400/6440, and slipped versus the Japanese yen to 2.5081/5111 from 2.5005/5027 at yesterday's close.
In regional currency trading, the ringgit mostly depreciated. It retreated against the Singapore dollar to 3.1241/1279 from 3.1164/1193, eased against the Thai baht to 12.2708/2903 from 12.1825/1988, and weakened against the Philippine peso to 6.50/6.52 from 6.47/6.48. However, it was slightly higher against the Indonesian rupiah at 222.1/222.4 compared to 222.3/222.7 at Wednesday's close.