KUALA LUMPUR — The ringgit is expected to trade cautiously next week, moving between RM4.41 and RM4.44 against the US dollar, amid rising concerns over US tariff policies.
SPI Asset Management managing partner Stephen Innes told Bernama the local currency may face pressure as an indirect casualty of escalating US tariff tensions.
“Given Malaysia’s strong trade ties with China, which has emerged as one of the nations affected by the latest tariff announcements, the currency’s trajectory will largely hinge on next week’s tariff rhetoric by the US.
“If the US moves forward with tariff measures, the ringgit may lean towards a weaker bias,” he said.
However, Innes noted that if US President Donald Trump softens his stance, as seen in his recent policy reversal on Colombia, the ringgit could experience a relief rally.
He added that foreign exchange markets tend to hedge against worst-case scenarios.
“Local exporters may delay selling their dollar holdings, while investment funds might retain their dollar positions,” he said.
On a Friday-to-Friday basis, the ringgit weakened to 4.4550/4600 from 4.3750/3800 a week earlier.
Meanwhile, the local currency depreciated against a basket of major currencies.
It fell against the British pound to 5.5336/5398 from 5.4373/4435, the Japanese yen to 2.8798/8832 from 2.8115/8149, and the euro to 4.6247/6299 from 4.5911/5964 by the end of the previous week.
The ringgit also weakened against ASEAN currencies.
It eased against the Thai baht to 13.2274/2498 from 13.0015/0241, the Singapore dollar to 3.2854/2896 from 3.2482/2522, the Indonesian rupiah to 273.2/273.6 from 270.5/270.9, and the Philippine peso to 7.63/7.64 from 7.50/7.51 at the previous Friday’s close. – February 1, 2025