QualampurAn analyst stated that Ringit opened up higher against the US dollar for the fifth consecutive day as uncertainties on US tariff policies motivated traders and investors to clarify about risky assets.
At 8 am, the local note appreciated 4.4185/4315 against Greenback from around 4.4230/4270 on Thursday.
On Thursday, President Donald Trump signed the US-Maxico-Canada Agreement (USMCA) Free Trade Treaty, signed executive works on several products in Mexico and Canada covered under the Free Trade Treaty.
Mohammad Sadek Jantan, head of the leading investment research of Uob Kay Hian Wealth Advesters, said that the step promotes investor’s spirit towards emerging market currencies including the ring.
“Furthermore, the US trade deficit widened to a record high in January, as businesses imported in the anticipation of tariff hikes, increased the external imbalance,” he told Bernma.
He said that Trump’s renewed rhetoric indicated continuous trade policy uncertainty to Canada and India as a ‘high-tariff nation’, which could introduce instability in global markets.
“From a strategic perspective, temporary recurrence in business stress supports a more creative approach to the ringtate in the near period,” he said.
Meanwhile, the bank Malaysia BHD’s Chief Economist Dr. Mohammad Afzanim Abdul Rashid said that Bank Negara Malaysia (BNM )’s monetary policy committee appeared cautious about the global economy, but would seem willing to keep the overnight policy rate (OPR) stable.
“From a technical point of view, the USD/MyR is in the neutral region, showing that the ringt can trade within a narrow range today, possibly oscillating around RM4.42 to RM4.43,” he said.
Ringit also did more business against a basket of major currencies.
It increased against the Japanese Yen against 2.9833/9922 from 2.9940/9969 to around Thursday, increased from 5.6919/7015 to 5.6964/7015 to 5.6964/7015 against British pounds, and increased from 4.7773/7816 to 4.7773/7816 for Euro.
The local currency was mostly higher than that of ASEAN currencies.
This improved Indonesian Rupiah from 270.6/271.0 on Thursday to 270.4/271.3, from 13.0880/1424 against Thai Baht to 13.0939/1124 by 13.0880/1424, and increased by 3.3147/3247 against Singapore dollar.
However, it was unchanged against the Philippine Peso at 7.71/7.73.
