Ringgit Ends Higher Against US Dollar, Other Major Currencies On Malaysia-US Trade Deal Optimism

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, July 24 (Bernama) -- The ringgit ended higher against the US dollar, buoyed by optimism that Malaysia could secure a more favourable trade deal with the United States (US), said an analyst.

The local note also traded higher versus the US dollar for the fifth consecutive day.

At 6 pm, the ringgit rose to 4.2135/2210 against the greenback from Wednesday’s close of 4.2255/2300.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia is actively engaging in discussions with the US over the impending 25 per cent tariff rate set to take effect on Aug 1, aiming to secure a rate below 20 per cent.

SPI Asset Management managing partner Stephen Innes said regional tailwinds further lifted sentiment after US President Donald Trump concluded a trade deal with Japan on Tuesday, which included reducing tariffs on the import of Japanese goods into the US to 15 per cent from 25 per cent.

“These developments are fuelling hopes that Washington’s broader tariff strategy is shifting from confrontation to compromise.

“Against this backdrop, investors see Malaysia as a likely beneficiary of the next wave of bilateral deals,” he told Bernama.

Innes added that the ringgit’s recent gains may signal its potential to benefit from improved trade conditions following the US-Japan agreement.

At the close, the ringgit was higher against a basket of major currencies.

It advanced against the Japanese yen to 2.8751/8804 from 2.8837/8870, rose against the British pound at 5.7080/7182 from 5.7230/7291 and inched up against the euro to 4.9517/9605 from 4.9586/9639.

The local note was firmer against regional peers, except the Philippine peso.

It increased vis-à-vis the Singapore dollar to 3.2995/3057 from 3.3071/3109, appreciated against the Thai baht to 13.0570/0863 from 13.1370/1567 and improved versus the Indonesian rupiah to 258.5/259.1 from 259.1/259.5.

However, the local note traded slightly lower against the Philippine peso, at 7.43/7.45, compared to 7.42/7.44 at yesterday’s close.

-- BERNAMA