KUALA LUMPUR: The ringgit closed lower against the US dollar today, as fading hopes of a trade deal ahead of the upcoming US tariff deadline weighed on investor sentiment.
At 6 pm, the local note depreciated to 4.2245/2305 versus the greenback from Tuesday’s close of 4.1995/2005.
SPI Asset Management managing partner Stephen Innes said the ringgit, which had enjoyed solid momentum in recent weeks, is now facing headwinds as markets brace for the July 9 tariff deadline, with US President Donald Trump making it clear there will be no extension.
"With the deadline fast approaching, markets are shifting into defensive mode.
"Asia foreign exchange market feels like it is trading in the dark - nervous, reactive, and unsure where the next blow will come from,” he told Bernama.
Innes said that Trump’s tough stance on Japan, particularly over rice and autos, has further fuelled regional tension, while his softened tone on India remains wrapped in diplomatic vagueness.
"Until clearer signals emerge, the market is expected to remain light on conviction and heavy on caution,” he added.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It eased versus the British pound to 5.7859/7941 from 5.7797/7866, and fell against the euro to 4.9748/9818 from 4.9566/9625 yesterday.
However, it appreciated against the Japanese yen to 2.9316/9360 from 2.9351/9389.
The local note was also traded lower against its ASEAN counterparts.
It slipped against the Indonesian rupiah to 259.9/260.5 from 258.9/259.4, weakened against the Philippine peso to 7.49/7.51 from 7.45/7.46, shed vis-à-vis the Singapore dollar to 3.3167/3217 from 3.3015/3059, and declined against the Thai baht to 13.0233/0482 from 12.9363/9585 previously. - Bernama
