Ringgit closes higher against US dollar
16/04/2025 20:00 MYT
BERNAMA
Ringgit closes higher against US dollar
At 6pm, the ringgit rose to 4.4085/4136 against the US dollar's 4.4100/4155 at Tuesday's close. - Photo courtesy/Astro AWANI
KUALA LUMPUR: The ringgit closed higher against the US dollar today, supported by the weakness of the United States (US) currency in an environment of uncertainty due to the trade war and tensions over US tariffs, said an analyst.
At 6pm, the ringgit rose to 4.4085/4136 against the US dollar at 4.4100/4155 at Tuesday's close.
SPI Asset Management Managing Partner Stephen Innes said traders continued to bet on the strength of the US dollar as they remained skeptical about the White House's strategy for handling the trade war and tariff uncertainty.
"The direction of this trade war is unclear...no end in sight at this time. This is creating uncertainty for US assets and the US dollar is bearing the brunt of it," he told Bernama .
Bank Muamalat Malaysia Bhd Head of Economics and Social Finance Dr Mohd Afzanizam Abdul Rashid said traders were no longer turning to safe haven currencies despite continued uncertainty over Donald Trump's tariff policies.
"In addition, the US Dollar Index (DXY) fell 0.74 to 99.479 points as all six components rose significantly against the US dollar," he said.
On Asian currencies, Innes said that local currencies are tracking the Chinese yuan with markets focused on the People's Bank of China's daily setting for any indication that Beijing might use the currency as a tool in the face of trade tensions.
"This has put pressure on the ringgit today as investors in the region remain wary of the gradual depreciation of the yuan, fearing it could trigger a chain reaction of competitive devaluation," he said.
At the close, the ringgit traded lower against a basket of major currencies.
The local unit fell against the euro to 5.0072/0129 from 4.9996/5.0059 at Tuesday's close, weakened against the Japanese yen to 3.0861/0898 from 3.0852/0895 yesterday and eased against the British pound to 5.8488/8554 from 5.8366/8439 previously.
Meanwhile, the ringgit traded mixed against ASEAN currencies.
It rose against the Indonesian rupiah to 261.8/262.2 from 262.0/262.5 at Tuesday's close and was unchanged against the Philippine peso at 7.76/7.78.
However, the ringgit fell against the Singapore dollar to 3.3537/3578 from 3.3498/3545 and weakened against the Thai baht to 13.2547/2773 from 13.1461/1708 previously.
