kuala lumpur: The ringgit opened higher against a weaker US dollar as US President Donald Trump refrained from announcing new tariffs, particularly on China, in his inauguration speech.
At 8am, the ringgit traded at 4.4650/4815 against the greenback, higher than Monday’s close of 4.4910/4960.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar index (DXY) fell 1.16 per cent to 108.082 points after the inaugural speech.
“There was no specific mention of tariff hike against China. However, the Wall Street Journal reported that President Trump plans to issue a sweeping memorandum directing federal agencies to review existing trade policies and relations with China, Canada, and Mexico.
“In some ways, tariffs are coming, but the approach appears to be systematic,” he told Bernama.
Mohammad Afzanizam also said that the focus of the 47th US President will be on domestic policies, especially pro-development initiatives.
“On that note, financial markets may get some relief today, at least for now, which should give a boost to the ringgit. Still, traders and investors are likely to remain cautious,” he said.
Mohamed Sedek Jantan, head of investment research at UOB’s Hian Wealth Advisors, highlighted that rather than abstaining from new tariffs altogether, Trump directed federal agencies to review existing policies, which would take a more measured approach. Is a sign of.
“It is worth noting that Trump’s trade team has not yet been confirmed, suggesting that policy details are still under development. Although there is no immediate impact, there remains immense potential for future business growth,” he said.
Meanwhile, Sedek reported that the Asia dollar index rose to 89.7446 in early trade before settling at 89.6895, indicating further strength for the ringgit against the US dollar.
Initially, the ringgit depreciated against major currencies.
It declined against the euro to 4.6530/6702 from Monday’s close of 4.6307/6358, against the British pound to 5.5058/5261 from 5.4723/4784, and against the Japanese yen to 2.8764 from 2.8741/8774. Came to /8874.
The ringgit traded higher against most ASEAN currencies.
It rose against the Thai baht to 13.0850/1445 from 13.0948/1155, strengthened against the Indonesian rupiah to 272.7/273.9 from 274.3/274.8, and against the Philippine peso to 7.63/7.66 from 7.67/7.68.
However, the local unit fell against the Singapore dollar, trading at 3.2947/3074 compared with Monday’s 3.2899/2938.
