Kuala lumpur: The ringgit slipped further against the greenback on Thursday, reflecting ongoing uncertainty surrounding US tariffs. At 6 pm, the local currency declined to 4.2465/2510 from its previous close of 4.2400/2490 on Wednesday.
According to BERNAMA News Agency, Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, indicated that market participants are anxious about the potential impact of US tariffs on the global economy. US President Donald Trump has announced plans to notify over 150 countries of their respective tariff rates, expected to range between 10 to 15 percent. Furthermore, Trump has denied rumors of the potential dismissal of US Federal Reserve Chairman Jerome Powell, adding to market anxiety.
Stephen Innes, managing partner at SPI Asset Management, noted that markets were initially unsettled by concerns over the Fed chairman’s position, leading to a temporary selloff of the US dollar and a brief increase in gold prices. However, the situation stabilized after Trump’s denial of plans to dismiss Powell.
Innes further commented on the ringgit’s performance, explaining that while regional currencies faced challenges, the ringgit’s outlook deteriorated due to Malaysia’s current trade relations with the United States. Unlike Indonesia, which recently secured a deal aimed at reducing tariffs and enhancing bilateral trade, Malaysia has not made comparable progress. This stagnation is increasingly concerning global investors, especially with the upcoming August 1 tariff deadline.
At the market close, the ringgit showed mixed performance against major currencies. It appreciated against the euro at 4.9217/9269 from 4.9248/9352, but weakened against the British pound to 5.6886/6946 from 5.6786/6907, and against the Japanese yen to 2.8548/8580 from 2.8508/8569.
In ASEAN currency markets, the ringgit mostly trended higher. It edged up against the Indonesian rupiah to 259.8/260.2 from 260.3/260.9, and strengthened against the Philippine peso to 7.41/7.43 from 7.43/7.45. However, it fell against the Thai baht to 13.0521/0720 from 13.0301/0630 and declined against the Singapore dollar to 3.3013/3051 from 3.2999/3071.