The Malaysian ringgit experienced a slight depreciation on Monday, primarily influenced by the strengthening US dollar fueled by escalating trade tensions between the US and China. Despite a more conciliatory tone from US President Donald Trump towards Chinese President Xi Jinping, the overall strength of the US dollar overshadowed any positive impact on Asian currencies. Experts attribute the ringgit's resilience to Malaysia's robust economic fundamentals and the central bank's commitment to maintaining stable interest rates. The ringgit's future performance is anticipated to hinge on the trajectory of US-China trade relations in the coming weeks.
The Malaysia n ringgit closed marginally lower today, pressured by a stronger US dollar amid heightened tariff rhetoric from US President Donald Trump, which lifted the dollar's strength in broader markets. At 6 pm, the ringgit depreciated to 4.3760/3825 against the greenback, compared to Friday’s close of 4.3750/3800. Stephen Innes, managing partner of SPI Asset Management, said that tariff concerns have resurfaced despite the US-Colombia trade conflict being averted.
'Despite the ringgit's decline, its performance was better in the early trading hours as it remains anchored by Malaysia's solid economic fundamentals and the central bank’s prudent decision to maintain steady interest rates. 'While Trump's more conciliatory tone towards President Xi of China offered some support to Asian currencies, it was insufficient to offset the dollar’s prevailing strength,” he told Bernama. Innes added that the ringgit's ability to stabilise, particularly above the 4.40 level, will largely depend on developments in US-China trade relations in the coming weeks.It weakened against the Japanese yen to 2.8313/8357 from Friday’s close of 2.8115/8149 and depreciated against the British pound to 5.4643/4724 from 5.4373/4435.The local note traded mixed against ASEAN currencies. It strengthened against the Thai baht to 12.9840/13.0110 from 13.0015/0241 and climbed against the Philippine peso to 7.48/7.50 from 7.50/7.51. The ringgit depreciated against the Indonesian rupiah to 270.6/271.0 from 270.5/270.9 and slipped against the Singapore dollar to 3.2518/2569 from 3.2482/2522.
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