Ringgit Eases Against Greenback Following Slower GDP Growth Estimate

By Danni Haizal Danial Donald

KUALA LUMPUR, April 18 (Bernama) -- The ringgit eased against the US dollar at the close today following the announcement of a lower-than-expected gross domestic product (GDP) growth estimate for Malaysia for the first quarter (1Q) of 2025, said an analyst.

At 6pm, the local note depreciated versus the greenback to 4.4100/4175 from Thursday’s close of 4.4050/4095.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the Department of Statistics Malaysia’s advance GDP estimates indicated the country’s economy grew by a slower-than-expected pace of 4.4 per cent in 1Q 2025.

“The lower estimates suggest that downside risks to economic growth have become elevated especially for the second half of the year due to the anticipated United States (US) tariff,” he told Bernama. 

Mohd Afzanizam noted that US President Donald Trump has indicated that he is reluctant to keep raising the tariff against China as it might impact trade between the two nations.

It remains to be seen whether such remarks would have a material impact on market sentiment in view of the policy inconsistencies, he said.

“The US dollar-ringgit was traded at RM4.41 while the US Dollar Index (DXY) stayed below the 100-point level,” he said.

SPI Asset Management managing partner Stephen Innes said the local note traded lower today, trailing against other Asian countries after last week’s tariff hike scenario involving China.

However, after the initial drop, markets stabilised as traders shifted to a wait-and-see approach, with attention turning to the outcome of the US-Japan trade negotiations, he said.

“These talks are seen as a key indicator not only of Trump’s demands on Tokyo, but also of the potential pressure he may put on other allied nations moving forward,” he added.

Meanwhile, the ringgit was traded lower against a basket of major currencies.

It dropped versus the Japanese yen to 3.0971/1028 from 3.0849/0883 at the close on Thursday, eased against the British pound to 5.8516/8616 from 5.8331/8391 yesterday and inched down vis-a-vis the euro to 5.0133/0218 from 5.0102/0154 previously.

The local note performed mixed against ASEAN currencies.

It gained against the Thai baht to 13.1815/2154 from 13.2211/2417 at Thursday’s close and it firmed versus the Indonesian rupiah tot 261.2/261.8 compared to  261.6/262.0 previously.

However, the local note traded flat against the Philippine peso at 7.77/7.79 and retreated vis-a-vis the Singapore dollar to 3.3603/3667 from 3.3562/3601 at yesterday’s close.

-- BERNAMA