KUALA LUMPUR: The ringgit ended almost flat against the US dollar today as traders remain cautious ahead of the trade talks between the United States and Japan this Thursday, said an analyst.
At 6 pm, the local note was little changed at 4.4100/4155 against the greenback, compared to Monday’s close of 4.4100/4160.
SPI Asset Management managing partner Stephen Innes said the market is currently in the wait-and-see mode, monitoring how aggressively the US is pressuring its allies for tariff concessions.
"Markets are treating Japan like a geopolitical test to see how hard the US leans in trade talks.
"If the talks with Japan go smoothly, it might set the tone for a softer diplomatic pivot. If not, we could be in for another round of protectionist tensions,” he told Bernama.
With the Easter holiday slowdown underway and the European Central Bank expected to keep rates steady this week, Innes said traders are hesitant to make bold moves, especially now that the US Treasury market volatility has started to ease.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the Trump administration appears to have been caught off guard by the recent rise in the US Treasury yields and the subsequent weakening of the US dollar, as tariff policies can undermine its safe haven status.
"It remains to be seen whether the Trump administration would reverse its damaging tariff policies, but it clearly has a significant impact on market confidence towards the US dollar as a safe haven currency,” said Mohd Afzanizam.
Meanwhile, the ringgit traded mostly lower against major currencies.
It gained against the euro to 4.9996/5.0059 from 5.0199/0267 at the close on Monday, but eased versus the Japanese yen to 3.0852/0895 from 3.0811/0855 yesterday and was lower vis-a-vis the British pound to 5.8366/8439 from 5.8097/8176 previously.
At the same time, the local note traded mixed against ASEAN currencies.
It rose against the Singapore dollar to 3.3498/3545 versus 3.3506/3556 yesterday and edged higher versus the Thai baht to 13.1461/1708 from 13.1481/1754 previously.
However, the local note was weaker vis-a-vis the Indonesian rupiah to 262.0/262.5 from 262.6/263.2 at Monday’s close, and depreciated versus the Philippines’ peso to 7.76/7.78 from 7.72/7.74 yesterday. - Bernama
