Kuala Lumpur: The ringgit ended the trading day nearly unchanged against the US dollar as traders exercised caution ahead of upcoming trade talks between the United States and Japan, scheduled for this Thursday, according to an analyst. By 6 pm, the local currency was recorded at 4.4100/4155 against the greenback, showing little movement from Monday’s closure of 4.4100/4160.
According to BERNAMA News Agency, Stephen Innes, managing partner at SPI Asset Management, stated that the market is currently in a “wait-and-see” mode, closely observing the extent of pressure the US may apply on its allies for tariff concessions. Innes remarked, “Markets are treating Japan like a geopolitical test to see how hard the US leans in trade talks. If the talks with Japan go smoothly, it might set the tone for a softer diplomatic pivot. If not, we could be in for another round of protectionist tensions.”
Innes further noted that with the Easter holiday slowdown in effect and the European Central Bank expected to maintain steady rates this week, traders are refraining from making significant moves, particularly as volatility in the US Treasury market has shown signs of easing.
Additionally, Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, commented on the situation, explaining that the Trump administration seems unprepared for the recent rise in US Treasury yields and the subsequent weakening of the US dollar. He highlighted that tariff policies can jeopardize the dollar’s status as a safe haven. “It remains to be seen whether the Trump administration would reverse its damaging tariff policies, but it clearly has a significant impact on market confidence towards the US dollar as a safe haven currency,” Mohd Afzanizam said.
In terms of performance against other currencies, the ringgit showed varied results. It appreciated against the euro, reaching 4.9996/5.0059 from Monday’s 5.0199/0267 close, but weakened against the Japanese yen, standing at 3.0852/0895 from 3.0811/0855. The ringgit also dropped against the British pound to 5.8366/8439 from 5.8097/8176 previously.
In the ASEAN regional currency market, the ringgit displayed mixed performance. It rose against the Singapore dollar, reaching 3.3498/3545 compared to 3.3506/3556 previously, and edged higher against the Thai baht to 13.1461/1708 from 13.1481/1754. However, it weakened against the Indonesian rupiah to 262.0/262.5 from 262.6/263.2 and depreciated against the Philippine peso to 7.76/7.78 from 7.72/7.74.