Ringgit weighed down by possibility of trade war

  • Forex
  • Friday, 9 Mar 2018

KUALA LUMPUR: The ringgit opened lower against the US dollar today against a strengthening greenback on the prospect of a full-blown trade war triggered by US President Donald Trump, said a dealer.  

At 9am, the local note was quoted at 3.9110/9180 from Thursday's 3.9070/9100.

OANDA Head of Trading Asia-Pacific Stephen Innes said the possibility of a trade war was weighing on regional sentiment after Trump approved tariffs on steel and aluminium products.

“We may see an extended pickup in regional outflows as Trump continues to beat the trade war drums, where he is expected to take direct aim at Asia with his next tariff salvo,” he added.

Innes said lower global oil prices due to increased US production was also weighing on sentiment.

Meanwhile, the local note was higher against a basket of major currencies.

It rose against the Singapore dollar to 2.9667/9738 from Thursday's 2.9670/9704, while it bettered the euro at 4.8129/8227 when compared to yesterday's 4.8373/8421.

It improved against the yen to 3.6654/6730 from 3.6827/6859 and appreciated against the British pound to 5.3968/4068 from 5.4155/5212. - Bernama