RINGGIT RETREATS TO OPEN MARGINALLY LOWER AS TRUMP’S TARIFF MOVE WEIGHS

By Zufazlin Baharuddin

KUALA LUMPUR, April 4 (Bernama) -- The ringgit retreated to open marginally lower today, weighed by pressure against the US dollar following United States (US) President Donald Trump’s announcements on global reciprocal tariffs.

At 8 am, the ringgit inched lower to 4.4425/4445 against the greenback from yesterday’s close of 4.4400/4460.

The Trump administration imposed sweeping reciprocal tariffs, with the White House releasing a list of roughly 100 countries and their respective tariff rates, including Malaysia.

Malaysia will face a 24 per cent reciprocal tariff by the US effective April 9. In response, the Ministry of Investment Trade and Industry expressed openness to engage in discussions with the US, signalling Malaysia’s pragmatic stance.

SPI Asset Management Managing Director Stephen Innes told Bernama that the ringgit could gain some breathing room if Malaysia’s delegation successfully negotiates concessions with the US.

He said the forex markets are expected to tread carefully heading into tonight’s US nonfarm payrolls.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Trump’s trade policy had sent a shockwave to the global financial markets.

He said the US Dollar Index (DXY) also declined significantly by 1.78 per cent to 101.956 points, while the 2- and 10-year US Treasury yield dropped by 18 and 10 basis points to 3.68 per cent and 4.03 per cent. 

“Trump seems unperturbed by such development and, in fact, expressed confidence more nations would come forward to call for trade negotiations.

“On the flip side, he is open to discussion and willing to compromise should the deals favour the US.

“Be that as it may, the uncertainties on trade policy are affecting business and consumer sentiments in the US as their cost will go up,” he told Bernama.

Hence, Mohd Afzanizam opined the prospect of weaker growth has become more visible, leading to possible monetary easing by the US Federal Reserve.

The ringgit traded mostly lower against major currencies.

It edged down against the Japanese yen to 3.0376/0392 from 3.0289/0332 and weakened against the euro to 4.9072/9094 from 4.8969/9035 but increased against the British pound to 5.8152/8179 from 5.8470/8549 yesterday.

The local note was lower against ASEAN currencies. 

It decreased against the Thai baht to 12.9708/9869 from 12.9529/9769 and inched down against the Indonesian rupiah at 265.2/265.5 from 265.1/265.6 from yesterday’s close.

It also slid against the Philippine peso at 7.78/7.79 from 7.77/7.79 and slipped against the Singapore dollar to 3.3275/3292 from 3.3229/3276 previously.

-- BERNAMA