Kuala Lumpur: The ringgit extended its positive run against the US dollar today as a result of a weakening greenback following greater uncertainties on the US government’s import tariffs that led to weak business and consumer sentiment, an analyst said. At 8 am, the local note climbed 170 percentage in points (pips) to 4.4100/4250 against the US dollar from 4.4270/4320 at Wednesday’s close.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid suggested that this scenario could result in a pullback in spending among firms and households, potentially deteriorating US economic growth severely. He also highlighted that some major investment banks in the US are contemplating the likelihood of a recession due to the tariffs.

Additionally, Mohd Afzanizam noted that Bank Negara Malaysia (BNM)’s Monetary Policy Committee decided to keep the overnight policy rate (OPR) unchanged at 3.00 percent. He emphasized the importance of the latest assessment by MPC members regarding the global economy and their outlook for 2025.

The ringgit was also observed to be attempting to move towards its current support level of 4.37 against the dollar, according to Mohd Afzanizam. Meanwhile, the ringgit’s performance was mixed against a basket of major and ASEAN currencies.

The ringgit traded marginally lower against the Japanese yen, British pound, and euro. However, it showed strength against several ASEAN currencies, including the Indonesian rupiah, Philippine peso, and Thai baht. The local currency fell slightly against the Singapore dollar.