Ringgit Lower Against US Dollar, Appreciates Vs Other Major Currencies

By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, July 7 (Bernama) -- The ringgit closed weaker against the US dollar on Monday but traded better against major currencies, as traders and investors are observing the United States (US) tariff situation, an analyst said. 

At 6 pm, the local note depreciated to 4.2310/2400 against the greenback from last Friday’s close of 4.2180/2260.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid stated that the latest remark by US President Donald Trump on an additional 10 per cent tariff for countries aligning themselves with BRICS has taken centre stage.

On Sunday (July 6), US President Donald Trump was reported saying that any country aligning with BRICS’ ‘anti-American policies’ will face an additional 10 per cent tariff.

“This goes to show that the tariff fear seems to make a comeback as the 90-day pause period is coming to an end this week.

“The US Dollar Index (DXY) gained 0.03 per cent to 97.208 points (at time of writing). It seems to be risk-off mode at the moment,” Mohd Afzanizam told Bernama.

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

It rose against the euro to 4.9647/9752 from 4.9675/9770 on Friday, appreciated against the Japanese yen to 2.9091/9155 from 2.9225/9282, and slightly advanced versus the British pound to 5.7563/7685 from 5.7601/7710 previously.

The local note traded mostly higher against its ASEAN counterparts.

It improved vis-à-vis the Singapore dollar to 3.3096/3172 from 3.3114/3182 Friday, and marginally higher against the Philippine peso to 7.46/7.48 from 7.47/7.49 previously.

However, it strengthened against the Thai baht to 12.9837/13.0173 from 13.0302/0609, and was flat against the Indonesian rupiah to 260.5/261.2 from 260.6/261.2 on Friday.

-- BERNAMA