KUALA LUMPUR: The ringgit opened higher against the US dollar for the fifth consecutive day as uncertainties over US tariff policies prompted traders and investors to steer clear of riskier assets, an analyst said.
At 8 am, the local note further appreciated to 4.4185/4315 against the greenback from 4.4230/4270 at Thursday’s close.
On Thursday, President Donald Trump signed executive actions delaying for nearly a month tariffs on many products from Mexico and Canada covered under the US-Mexico-Canada Agreement (USMCA) free trade treaty.
UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the move eases near-term trade frictions, boosting investor sentiment towards emerging market currencies, including the ringgit.
"Moreover, the US trade deficit widened to a record high in January as businesses frontloaded imports in anticipation of tariff hikes, exacerbating external imbalances,” he told Bernama.
He added that Trump’s renewed rhetoric labelling Canada and India as ‘high-tariff nations’ signalled persistent trade policy uncertainty, which could introduce volatility into global markets.
"From a strategic standpoint, the temporary reprieve in trade tensions supports a more constructive outlook for the ringgit in the near term,” he said.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Bank Negara Malaysia (BNM)’s Monetary Policy Committee appeared cautious about the global economy but seemed inclined to keep the overnight policy rate (OPR) steady in the near term.
"From a technical perspective, the USD/MYR is in neutral territory, indicating the ringgit could trade within a narrow range today, possibly oscillating around RM4.42 to RM4.43,” he noted.
The ringgit also traded higher against a basket of major currencies.
It strengthened against the Japanese yen to 2.9833/9922 from 2.9940/9969 at Thursday’s close, firmed against the British pound to 5.6919/7087 from 5.6964/7015, and rose against the euro to 4.7662/7803 from 4.7773/7816.
The local currency was mostly higher against ASEAN currencies.
It improved vis-a-vis the Indonesian rupiah to 270.4/271.3 from 270.6/271.0 on Thursday, edged up against the Thai baht to 13.0880/1424 from 13.0939/1124, and strengthened against the Singapore dollar to 3.3147/3247 from 3.3186/3218.
However, it was unchanged against the Philippine peso at 7.71/7.73. - Bernama
