Ringgit Rises Against Us After Trump S Inauguration Speech

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KUALA LUMPUR: The ringgit opened higher against a weakening US dollar as US President Donald Trump, in his inauguration speech avoided announcing new tariffs, particularly on China.
At 8 am, the ringgit traded at 4.4650/4815 against the greenback, up from 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 following the inauguration speech.
"There was no specific mention of tariff hikes against China. However, the Wall Street Journal reported that President Trump plans to issue a broad memorandum directing federal agencies to review existing trade policies and relationships with China, Canada and Mexico.
"In some sense, tariffs are coming, but the approach appears to be methodical,” he told Bernama.
Mohd Afzanizam also noted that the 47th US President’s focus will be on domestic policies, particularly pro-growth initiatives.
"On that note, the financial markets could see some relief today, at least for now, providing a boost to the ringgit. Nevertheless, traders and investors are likely to remain cautious,” he added.
UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, highlighted that rather than refraining entirely from new tariffs, Trump directed federal agencies to review existing policies, signalling a more measured stance.
"It is worth noting that Trump’s trade team has yet to be confirmed, suggesting policy details are still under development. While there is no immediate impact, future trade developments remain highly probable,” he said.
Meanwhile, Sedek noted that the Asia Dollar Index rose to 89.7446 in early trading before stabilising at 89.6895, indicating further strength for the ringgit against the US dollar.
At the opening, the ringgit depreciated against major currencies.
It slid against the euro to 4.6530/6702 from Monday’s close of 4.6307/6358, weakened against the British pound to 5.5058/5261 from 5.4723/4784, and edged lower against the Japanese yen to 2.8764/8874 from 2.8741/8774.
The ringgit traded mostly higher against ASEAN currencies.
It climbed against the Thai baht to 13.0850/1445 from 13.0948/1155, strengthened against the Indonesian rupiah at 272.7/273.9 compared to 274.3/274.8, and edged up 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 versus Monday’s 3.2899/2938. - Bernama

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