Ringgit Opens Higher Against Greenback After Washington Pauses Tariffs

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KUALA LUMPUR: The ringgit opened higher against the US dollar today, as investors remained cautious following Washington’s announcement of a 90-day pause in reciprocal tariffs for all countries except China.
At 8.14am, the local currency rose to 4.4275/4425 against the greenback, compared to 4.4670/4730 at yesterday’s close.Bank Muamalat Malaysia chief economist Afzanizam Rashid said after the 90-day pause, the financial markets have become haywire, with US equities falling steeply, the 10-year US treasury yielded higher while the US Dollar Index (DXY) declined significantly.
“What is obvious is that traders and investors are reassessing how the tariff will affect the economy, with growth and inflation hit hard simultaneously.
“Stagflation looks like a probable outcome that can emerge from the trade war, and this will complicate the Federal Reserve’s task to implement its dual mandate of maximum employment and price stability,” he told Bernama.
Afzanizam said US inflation during March moderated to 2.4% from 2.8% previously, but investors are sceptical as the reciprocal tariff during April could reverse the trend.
“On that note, the ringgit is expected to remain in a tight range, taking cues from the decline in DXY and heightened market uncertainties over tariffs,” he added.
The ringgit was mostly lower against major currencies.
It weakened against the Japanese yen to 3.0879/3.0988 from 3.0594/3.0639, depreciated against the euro to 4.9854/4.0023 from 4.9401/4.9467, but edged up against the British pound to 5.7540/5.7735 from 5.7566/5.7644 yesterday.
Meanwhile, the local note was mostly stronger against Asean currencies.
It gained against the Singapore dollar at 3.3330/3.3450 from 3.3361/3.3411, rose against the Philippine peso at 7.72/7.75 from 7.79/7.81 and was higher versus the Indonesian rupiah to 263.1/264.1 from 265.5/265.9 yesterday.
However, the ringgit was lower against the Thai baht to 13.0910/1439 from 13.0618/0866. - FMT

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