KUALA LUMPUR: The ringgit closed lower against the US dollar on Tuesday as issues surrounding the US tariffs are affecting market sentiment, said an economist.
However, the local note trended mostly higher versus major and ASEAN currencies.
At 6 pm, the ringgit eased to 3.8915/8980 versus the greenback from yesterday’s close of 3.8885/8925.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said President Donald Trump has shown no signs of letting up and is seen aggressively looking for a different legal route to enact higher tariffs after the US Supreme Court struck down Trump’s International Emergency Economic Powers Act (IEEPA)-based tariffs policy.
“Thus, the degree of market uncertainties has escalated despite a brief respite after the Supreme Court decision,” he told Bernama.
He noted that today, local note was moving in a narrow range against the US dollar.
Earlier in the session, the ringgit touched 3.87 against the US dollar at 3.8790/9010, a level last seen on April 13, 2018, when it stood at 3.8785/8815.
At the close, the ringgit traded mostly higher against a basket of major currencies.
It strengthened versus the Japanese yen to 2.4968/5011 from 2.5120/5147 at Monday’s close, rose against the euro to 4.5873/5950 from 4.5888/5935, however, it edged down vis-a-vis the British pound to 5.2531/2619 from 5.2526/2580 previously.
The local note also traded mostly higher against its ASEAN peers.
The ringgit was marginally up versus the Singapore dollar to 3.0726/0780 from 3.0727/0761 at yesterday’s close, rebounded against the Indonesian rupiah to 231.2/231.7 from 231.4/231.7 and climbed against the Philippine peso to 6.74/6.75 from 6.75/6.76 previously.
However, it contracted versus the Thai baht to 12.5463/5726 from 12.5342/5532 yesterday. – Bernama
