Kuala Lumpur: The ringgit is expected to trade cautiously next week, moving between RM4.41 and RM4.44 against the US dollar, amid rising concerns over US tariff policies. SPI Asset Management managing partner Stephen Innes told Bernama the local currency may face pressure as an indirect casualty of escalating US tariff tensions.

According to BERNAMA News Agency, Malaysia’s strong trade ties with China, which is one of the nations affected by the latest tariff announcements, will play a significant role in determining the ringgit’s trajectory. The currency’s performance will largely hinge on the US’s tariff rhetoric in the upcoming week. If the US decides to proceed with the tariff measures, the ringgit may trend towards a weaker position. However, if US President Donald Trump softens his stance, as observed in his recent policy change regarding Colombia, the ringgit could experience a relief rally.

Innes further explained that foreign exchange markets often hedge against worst-case scenarios. Local exporters might hold off on selling their dollar holdings, while investment funds could retain their dollar positions to mitigate potential risks. On a Friday-to-Friday basis, the ringgit has weakened to 4.4550/4600 from 4.3750/3800 in the previous week.

Additionally, the local currency depreciated against a basket of major currencies. It fell against the British pound to 5.5336/5398 from 5.4373/4435, the Japanese yen to 2.8798/8832 from 2.8115/8149, and the euro to 4.6247/6299 from 4.5911/5964 by the end of the previous week. The ringgit also weakened against ASEAN currencies, easing against the Thai baht to 13.2274/2498 from 13.0015/0241, the Singapore dollar to 3.2854/2896 from 3.2482/2522, the Indonesian rupiah to 273.2/273.6 from 270.5/270.9, and the Philippine peso to 7.63/7.64 from 7.50/7.51 at the previous Friday’s close.