KUALA LUMPUR: The ringgit closed marginally lower against the US dollar on the first trading day of December as investors shifted interest towards safe haven currencies, including the US dollar, an analyst said. At 6 pm, the local currency edged down to 4.4570/4625 against the US dollar, compared to Friday’s close of 4.4425/4495.

According to BERNAMA News Agency, Stephen Innes, managing director of SPI Asset Management, noted that the US dollar began the week on an upswing, reversing some losses from the end of the previous month. This resurgence came after US President-elect Donald Trump issued a warning over the weekend, threatening a 100% tariff on BRICS nations if they moved away from the US dollar. This stance affected nations heavily engaged with China on trade, contributing to the ringgit’s weaker performance.

Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, shared a similar view, suggesting that the ringgit’s dip could be attributed to Trump’s hawkish comments regarding
import tariffs. He emphasized that while Trump has not yet been inaugurated, his statements reflect his perspective on the evolving economic situation. Dr Rashid also highlighted the potential domestic economic consequences, such as inflation and rising living costs, if higher tariffs are implemented.

The ringgit showed mixed performance against a basket of major currencies, weakening against the British pound and Japanese yen, while strengthening against the euro. It performed mostly higher against ASEAN currencies, gaining against the Singapore dollar, Indonesian rupiah, and Thai baht, but dipping against the Philippine peso.