Ringgit Treads Cautiously Amid US Trade Policy Uncertainty
The ringgit opened higher against most major currencies on Friday, but softened against the US dollar due to risk-off sentiment in markets. Crude oil prices continued to climb, and the Trump administration's trade protectionist policies were a concern for investors.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that US President Donald Trump has announced additional import tariffs of between 10 per cent and 12.5 per cent on 60 economies, including Malaysia, citing forced labour practices as the reason.
The local currency traded higher against a basket of major currencies at today's opening, with notable gains against the Japanese yen, euro, and British pound. However, it inched down versus the Indonesian rupiah and fell vis-a-vis the Thai baht.