Ringgit Softens Against Dollar Amid Trump Tariffs

The Malaysian ringgit opened higher against most major currencies on Friday but softened against the US dollar due to a risk-off market sentiment. According to Bank Muamalat Malaysia Bhd's chief economist Afzanizam Rashid, US President Donald Trump has announced additional import tariffs of between 10% and 12.5% on 60 economies, including Malaysia, citing forced labor practices as the reason.

Rashid noted that Trump remains adamant on using tariffs as a means to boost its economy after the major setback in February when the US Supreme Court annulled the previous tariff measures. As a result, the local currency is expected to trade cautiously today within the RM4.08 to RM4.10 range against the US dollar.

The ringgit also traded higher against a basket of major currencies at today's opening, strengthening against the Japanese yen and appreciating vis-a-vis the euro and British pound. However, it fell slightly versus the Indonesian rupiah and Thai baht.