RINGGIT RISES AGAINST GREENBACK FOLLOWING GOVT RESPONSE TO IMPACT FROM US RECIPROCAL TARIFFS

By Danni Haizal Danial Donald

KUALA LUMPUR, May 5 (Bernama) -- The ringgit ended higher against the US dollar at the close on Monday, amid the government’s response towards the impact of the reciprocal tariff from the United States (US), said an analyst.

At 6 pm, the ringgit surged to 4.1990/2035 against the greenback, compared to last Friday’s close of 4.2560/2600.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said today’s special parliamentary meeting indicated that the government is being pragmatic in dealing with the tariff shocks enacted by US President Donald Trump.

“The session suggests that the government has acknowledged the fact that the tariff shocks are expected to impact the economy significantly, and they are ready to take necessary steps to mitigate the impact. 

“It demonstrates the government’s resolve to be forthcoming in their communication to the public. So, to some degree, this could help contribute to the confidence in our economy and the government and ultimately our ringgit,” he told Bernama.

Additionally, Mohd Afzanizam said that the better-than-expected non-farm payroll last Friday failed to resuscitate the value of the US dollar, with the US Dollar Index (DXY) continuing to linger at around 99 points.

SPI Asset Management managing partner Stephen Innes said a mix of regional optimism and domestic developments buoyed the ringgit’s positive performance.

He said at the regional level, renewed hopes of a US-China tariff resolution have sparked a broad-based re-rating of Asian currencies, giving a notable boost to the ringgit.

“The broader dollar softening and an uptick in onshore demand for ringgit assets, and the conditions were ripe for a squeeze.

“The ringgit’s move is part fundamental, part flow-driven. And if the trade thaw narrative gains traction, it could extend,” he added.

At the close, the ringgit traded higher against a basket of major currencies.

It rose versus the Japanese yen to 2.9192/9225  from  2.9437/9467 at Friday’s close, strengthened vis-a-vis the euro to 4.7629/7680 from 4.8297/8342 previously, and improved against the British pound to 5.5868/5928 from 5.6639/6692.

Similarly, the ringgit performed better against its ASEAN peers.

It was higher versus the Singapore dollar at 3.2644/2682 compared to Friday’s close of 3.2862/2898 and gained vis-a-vis the Thai baht to 12.7497/7747 from 12.8697/8903.

The local note also improved against the Philippine peso to 7.53/7.54 from 7.65/7.67 on Friday and appreciated versus the Indonesian rupiah to 255.1/255.5 from 258.8/259.3.

-- BERNAMA