Qualampur: Ringit opened firmer against the US dollar on Wednesday, supported by cautious optimism before the August 1 tariff deadline. At 8.03 pm, the local currency was strengthened by 4.2195/2375 against Greenback, from close to 4.2300/2370 on Tuesday.
Bank Malaysia Malaysia BHD Chief Economist Dr. Mohammad Afzanim Abdul Rashid said that Ringit is likely to have trade between RM4.22 and RM4.24 as markets areware of potential tariff effects. “Investors are adopting a protected stance, waiting for obvious signs on business policies,” he said.
SPI Asset Management Managing Partner Stephen Inse attributed the early benefits of the ring to transfer macroeconomic conditions. He said, “The US dollar is under pressure from a falling treasury yield and domestic political concerns, benefiting emerging market currencies such as a ringtime,” he said.
Ines said that the ribound of the ringt is more than a temporary bounce. “A soft dollar, renewed business talks, and tariff relief hopes are creating a favorable environment for the ringt,” he told Bernma. He also highlighted the ongoing conversation between Malaysia and the United States, where the Malaysian officials are allegedly demanding a lower tariff rate of 15–20 percent compared to the proposed 25 percent.
Against other major currencies, Ringit showed mixed performances. It weakened against the Japanese yen from 2.8767/8891 from 2.8690/8739 and submerged the vs Euro from 4.9528/9740 to 4.9512/9594. However, it is higher than the British pound, which increased from 5.7088/7183 to 5.7052/7295.
Regionally, Ringit strengthened 3.3001/3144 against the Singapore dollar from 3.3011/3071 and appreciated 259.1/259.7 to 258.5/259.7 against Indonesian Rupia. This increased against the Philippine Peso from 7.39/7.43 to 7.41/7.43. However, it slipped against Thai Baht from 13.1138/1767 to 13.0899/1172. – Bernma
