KUALA LUMPUR: The ringgit opened higher today on expectations that Malaysia will be among the least affected by the US government's implementation of reciprocal tariffs on April 2, given that the country is seen as having one of the lowest tariff rates.
At 8 am, the ringgit improved to 4.4155/4230 against the greenback from last Friday’s close of 4.4180/4220.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit trended higher this morning as market participants await US government tariff implementation.
"Market participants will scrutinise details of the reciprocal tariffs and how they are going to affect the each country’s economy.
"It is feared that tariffs may lead to slower growth, necessitating a swift policy response from the global central banks as the first line of defense to sustain growth. Such thoughts will result in a defensive mode among traders and investors, leading to higher demand for the safe haven (US) currency,” he told Bernama today.
Citing data from World Trade Organisation (WTO), Afzanizam said countries such as India, Bangladesh dan South Korea have an average tariff rates of 17.1 per cent, 14.1 per cent and 13.4 per cent, respectively against Malaysia’s 5.6 per cent.
"In that sense, Malaysia could be among the least affected country,” he added.
The ringgit traded higher against a basket of major currencies.
The local note increased against the British pound to 5.7062/7158 as compared with 5.7151/7203 registered last Friday. It advanced further against the Japanese yen to 2.9500/9552 from last Friday’s 2.9574/9602 and was almost flat against the euro at 4.7842/7923 versus 4.7843/7886.
The local note also strengthened against ASEAN currencies.
It edged up against the Singapore dollar to 3.3075/3134 from 3.3081/3114 at the previous close, was almost unchanged against the Philippine peso at 7.70/7.72 from 7.70/7.71, ticked up against the Indonesian rupiah to 267.5/268.1 versus 267.7/268.0 and gained against the Thai baht to 13.0235/0545 from 13.0436/0608 previously. - Bernama
