KUALA LUMPUR: The ringgit jumped to its highest level in almost six months, against the US dollar at the close on Monday, touching the 4.36-level amid concerns over ongoing tariff tension.
At 6 pm, the ringgit surged to 4.3670/3735 against the greenback, compared to last Friday’s close of 4.4100/4175.
Previously on Oct 28, 2024, the ringgit hit a high of 4.3605/3640 against the greenback.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit continues to gain strength against the greenback amidst heightened uncertainties over tariff issues.
"It appears that inconsistencies in policymaking as well as antagonising their allies have led to weak sentiments over US assets.
"In some sense, the current predicament has resulted in the acceleration in the de-dollarisation trend as reflected in the decline in foreign holdings of US treasury bonds and subsequently lower US treasury yields,” he told Bernama.
On that note, the ringgit could gain firmer footing in the near term with the immediate support level located at RM4.36, he added.
Meanwhile, the ringgit traded mostly lower against a basket of major currencies.
It weakened against the Japanese yen to 3.1046/1095 from 3.0971/1028 at last Friday’s close, eased against the euro to 5.0408/0483 from 5.0133/0218 but was slightly higher against the British pound to 5.8513/8601 from 5.8516/8616.
The local note performed mostly higher against ASEAN currencies.
The ringgit firmed against the Singapore dollar to 3.3515/3570 from 3.3562/3601 at last Friday’s close, appreciated against the Indonesian rupiah to 259.8/260.3 compared with 261.2/261.8 previously, and traded stronger against the Philippine peso at 7.71/7.73 versus 7.77/7.79.
However, it eased against the Thai baht to 13.1914/2170 from 13.1815/2154 at last Friday’s close. - Bernama
