KUALA LUMPUR: The ringgit continued its upward momentum to close higher against the United States (US) dollar today as sudden shifts in US trade policies and growing concerns over the US fiscal policy pushed the US dollar index (DXY) lower.
At 6 pm, the local note rose to 4.2155/2220 versus the US dollar from last Friday’s close of 4.2285/2345.
Meanwhile, US President Donald Trump’s decision to postpone the planned 50 per cent tariffs on European Union (EU) goods to July 9 gave both sides more time to reach a deal.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said concerns over the US economy are gaining traction as higher US Treasury yields would likely significantly impact the US economy.
"The next thing to watch is whether the ‘One Big Beautiful Bill’, which is seen as likely to result in a wider fiscal deficit, will be passed by the US Senate.
"For now, the view of US fiscal position is rather negative as reflected by the rise in US Treasury yields and the US dollar outlook,” he told Bernama.
The ringgit traded mostly lower against a basket of major currencies at the close.
It gained vis-à-vis the euro to 4.7972/8046 from 4.7985/8053 last Friday. However, it fell against the British pound to 5.7175/7263 from 5.7072/7153 and slid marginally versus the Japanese yen to 2.9506/9553 from 2.9502/9546.
The local note, however, traded higher against its ASEAN peers.
It improved against the Singapore dollar to 3.2826/2879 from 3.2891/2940 last Friday, strengthened against the Thai baht to 12.9231/9466 from 12.9744/13.0012, and advanced vis-à-vis the Philippine peso to 7.60/7.62 from 7.65/7.66.
The ringgit also rose against the Indonesian rupiah to 259.4/259.9 from 260.7/261.1. - Bernama
