US Tariffs Deadline Lifts Ringgit At Close
KUALA LUMPUR, Feb 4 (Bernama) -- The ringgit settled higher against the US dollar on Tuesday, as the rollback of the United States (US) tariffs deadline on Mexico and Canada lifted global growth sentiment, said an analyst.
At 6 pm, the ringgit advanced to 4.4400/4495 against the greenback from Monday’s close of 4.4710/4800.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid stated that the 30-day delay in implementing US import tariffs on Canada and Mexico was the primary factor affecting the currency market.
“It shows that there is room for negotiation for both parties to reach an amicable solution. However, the situation is still fluid given the surprise element.
“China has already responded with tariff hike on certain products related to agricultural tools and energy import from the US. As such, the currency market will likely remain volatile,” he told Bernama.
SPI Asset Management managing partner Stephen Innes pointed out that the tariff threat still looms, especially with April 1 on the horizon, which is the deadline Trump has set for his trade team’s review.
“That could bring a more sector-specific approach, with longer lead times for any new measures. Even though the last few days have been high-stakes political theatre, it is clear that the new administration is playing the long game, aiming to reshape global trade in America’s favour,” he said.
Meanwhile, the ringgit mostly traded lower against other major currencies.
It strengthened against the Japanese yen to 2.8581/8645 from 2.8838/8898, fell against the euro to 4.5905/6003 from 4.5747/5839, and slipped against the British pound to 5.5167/5285 from 5.4966/5077.
The local note mostly traded higher against ASEAN currencies.
It went down against the Singapore dollar to 3.2741/2813 from 3.2709/2777 but rose against the Thai baht to 13.1241/1580 from 13.1345/1687.
It was slightly stronger against the Indonesian rupiah to 271.5/272.2 from 271.7/272.5 and up against the Philippine peso to 7.61/7.63 from 7.62/7.64.
-- BERNAMA