Ringgit Closes Lower Against US Dollar Amid Market Uncertainty

By Zufazlin Baharuddin

KUALA LUMPUR, May 30 (Bernama) -- The ringgit closed lower against the US dollar on Friday amid renewed market uncertainty after a US federal appeals court granted the White House’s request to temporarily pause a lower-court ruling which struck down President Donald Trump’s tariffs on imports.

At 6 pm, the local note decreased to 4.2530/2605 versus the greenback from Thursday’s close of 4.2390/2475.

Earlier, the US Court of International Trade had ruled that the tariffs announced by Trump were illegal. However, the Trump administration challenged the trade court ruling, leading to the tariffs being restored while the appeal process runs its course.

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said while the legal process unfolds, businesses and markets are left navigating a more complex and uncertain global trade landscape.

“Investors increasingly recognise that markets are now entering a more prolonged period of uncertainty.

“Sentiment has turned more defensive as capital allocators reassess both external developments and domestic dynamics,” he told Bernama.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said moving forward,  market participants will closely monitor the legal trajectory of US tariff policies, which may influence broader market sentiment. 

At the close, the ringgit traded lower against a basket of major currencies.

It weakened versus the Japanese yen to 2.9531/9585 from Thursday's close of 2.9188/9249, slipped vis-à-vis the euro to 4.8169/8254 from 4.7803/7899 yesterday and depreciated against the British pound to 5.7284/7385 from 5.7091/7205 previously.

The local note also fell against its ASEAN peers.

It slipped versus the Singapore dollar to 3.2938/3002 from 3.2853/2921 on Thursday and dropped against the Indonesian rupiah to 260.4/261.1 from 259.9/260.5 previously.

The ringgit also inched down against the Thai baht to 12.9507/9790 from 12.9321/9647 yesterday and slid vis-à-vis the Philippine peso to 7.62/7.64 from 7.60/7.62.

-- BERNAMA