KUALA LUMPUR: The ringgit ended marginally lower against the US dollar on Wednesday as the greenback strengthened on the back of renewed optimism surrounding US-China trade talks, said an economist.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said this happened following comments from President Donald Trump signalling a possible reduction in tariffs if China is open to negotiation.
At 6 pm, the local currency eased to 4.3880/3925 against the greenback, compared with Tuesday’s close of 4.3835/3905.
He added that while the gesture was positively received by financial markets, the actual impact on trade dynamics and currency movements will depend on concrete developments in the negotiations.
"It remains to be seen whether such tactics would yield the desirable outcome. At least, there are signs that the US President is willing to make concessions in the current standoff, which has been well accepted by the financial markets,” he told Bernama.
He said thus far, the equities benchmark across the Asian region and early trades in Europe showed some positive indication.
"The US Dollar Index (DXY) has also recouped some lost ground when it rose by 0.22 per cent to 99.139 points,” he said.
Back home, the ringgit traded firmer against a basket of major currencies.
It rose against the Japanese yen to 3.0925/0959 from 3.1206/1260 at Tuesday’s close, firmed against the British pound to 5.8457/8517 from 5.8590/8683, and strengthened versus the euro to 5.0102/0154 from 5.0362/0442.
The local note traded mixed against ASEAN currencies.
It appreciated against the Singapore dollar to 3.3478/3515 from 3.3523/3579, strengthened against the Thai baht to 13.1251/1457 from 13.1930/2212, but fell against the Philippine peso at 7.75/7.77 from 7.73/7.75 and decreased against the Indonesian rupiah at 260.0/260.5 compared with 259.9/260.5 yesterday. - Bernama
