KUALA LUMPUR: The ringgit traded flat against the US dollar at the opening today as mixed signals from President Trump suggested that certain countries might receive tariff breaks when the reciprocal tariffs take effect on April 2, boosting appetite for riskier assets.
At 8 am, the ringgit stayed at 4.4325/4485 against the greenback from yesterday’s close of 4.4325/4370.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest indication gives the impression that the tariff measure would be more targeted and, therefore, the impact on the global economy appears manageable.
"Risky assets such as equities rebounded forcefully with S&P 500 rose more than one per cent while the two- and 10-year US Treasury yielded nine basis points higher to 4.03 per cent and 4.33 per cent respectively,” he told Bernama.
Mohd Afzanizam said Bank Negara Malaysia has maintained the gross domestic product growth and inflation projection for 2025 at 4.5 per cent to 5.5 per cent and 2.0 per cent to 3.5 per cent, respectively, suggesting economic assessment has been consistent despite the challenging outlook from abroad.
"As such, the ringgit could appreciate today owing to improved risk sentiments,” he added.
Meanwhile, the ringgit rebounded to trade higher against a basket of major currencies.
It gained against the euro to 4.7880/8053 from 4.8039/8088 at yesterday’s close, appreciated further against the British pound to 5.7277/7484 from 5.7441/7499 and strengthened against the Japanese yen to 2.9395/9505 from 2.9631/9663.
The local note was traded better against ASEAN currencies.
It edged up against the Singapore dollar to 3.3103/3225 from 3.3148/3184 at the previous close, rose against the Indonesian rupiah to 267.5/268.6 from 267.5/267.9 and higher against the Thai baht to 13.0433/0988 as compared with 13.0849/1043.
It, however, was flat against the Philippine peso at 7.73/7.76 as compared with 7.73/7.74. - Bernama
