Ringgit Extends Gains As Govt Initiatives, US-Japan Trade Deal Lift Sentiment
By Fatin Umairah Abdul Hamid
KUALA LUMPUR, July 23 (Bernama) -- The ringgit extended its gains against the US dollar at Wednesday's close, lifted by the latest fiscal support measures announced by the government as foreign funds flocked into the local equity market, said an analyst.
The local currency was also supported by optimism following the US-Japan trade deal which boosted Asian equity and foreign exchange markets across the board.
At 6 pm, the ringgit rose to 4.2255/2300 versus the greenback compared with Tuesday's close of 4.2300/2370.
Earlier today, Prime Minister Datuk Seri Anwar Ibrahim unveiled a new round of fiscal support measures aimed at alleviating living costs, stimulating domestic consumption and boosting household spending ahead of the upcoming National Day and Malaysia Day celebrations.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the one-off RM100 cash aid for Malaysians aged 18 and above, given through MyKad under the RM2 billion Sumbangan Asas Rahmah (SARA) programme, would help support economic growth in the second half of 2025.
'In a way, it's like a mini fiscal stimulus at a time when external uncertainties have become apparent. Such proactive move bodes well for the ringgit in the near term,' he told Bernama.
Meanwhile, SPI Asset Management managing partner Stephen Innes said the ringgit was supported by regional tailwinds after US President Donald Trump struck a 'massive' trade deal with Japan on Tuesday, which included cutting US tariff on the latter to 15 per cent from 25 per cent.
Innes noted that the deal has boosted market optimism which lifted stocks and Asian currencies including the ringgit.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
26 minutes ago
- The Sun
Australia to acquire 11 advanced Mogami-class frigates from Japan
SYDNEY: Australia will upgrade its navy with 11 Mogami-class frigates built by Japan's Mitsubishi Heavy Industries, Defence Minister Richard Marles said on Tuesday. Australia is in the midst of a major military restructuring announced in 2023, turning towards long-range strike capabilities to better respond to China's naval might. It is striving to expand its fleet of major warships from 11 to 26 over the next 10 years. 'This is clearly the biggest defence-industry agreement that has ever been struck between Japan and Australia,' Marles said, touting the US$6 billion (Aus$10 billion) deal. Mitsubishi Heavy Industries was awarded the tender over Germany's ThyssenKrupp Marine Systems. 'This decision was made based on what was the best capability for Australia,' Marles said. 'We do have a very close strategic alignment with Japan.' Mogami-class warships are advanced stealth frigates equipped with a potent array of weapons. Marles said they would replace Australia's ageing fleet of Anzac-class vessels, with the first Mogami-class ship to be in service by 2030. 'The Mogami-class frigate is the best frigate for Australia,' said Marles. 'It is a next-generation vessel. It is stealthy. It has 32 vertical launch cells capable of launching long-range missiles.' Defence industry minister Pat Conroy said the frigates were capable of launching long-range Tomahawk cruise missiles. - 'More lethal' - 'The acquisition of these stealth frigates will make our navy a bigger navy, and a more lethal navy,' he said. The first three Mogami-class frigates will be built overseas, Conroy said, with shipbuilding yards in Western Australia expected to produce the rest. Australia announced a deal to acquire US-designed nuclear-powered submarines in 2021, scrapping a years-long plan to develop non-nuclear subs from France. Under the tripartite AUKUS pact with the United States and the United Kingdom, the Australian navy plans to acquire at least three Virginia-class submarines within 15 years. The AUKUS submarine programme alone could cost the country up to US$235 billion over the next 30 years, according to Australian government forecasts, a price tag that has stoked criticism of the strategy. Major defence projects in Australia have long suffered from cost overruns, government U-turns, policy changes and project plans that make more sense for local job creation than defence. Australia plans to gradually increase its defence spending to 2.4 percent of gross domestic product -- above the two percent target set by its NATO allies, but well short of US demands for 3.5 percent. - AFP
Free Malaysia Today
28 minutes ago
- Free Malaysia Today
Stocks mostly rebound on US interest rate cut bets
Major US indices spent the entire day in positive territory, with the broad-based S&P 500 finishing up 1.5%. (AP pic) NEW YORK : Most stock markets bounced on Monday on hopes of US interest rate cuts after weak jobs figures raised concerns about the world's top economy. The broad gains followed a Wall Street sell-off on Friday in reaction to the jobs data and news that dozens of countries would be hit with US tariffs ranging from 10% to 41%. Major US indices spent the entire day in positive territory, with the broad-based S&P 500 finishing up 1.5%. 'Traders and investors have made a lot of money by deciding that tariffs won't matter, and they're not going to change that now,' said Steve Sosnick of Interactive Brokers. 'I think the bias that most of them have now is 'Let's not think about tariffs as being a problem until they actually prove that they are.'' European indices mostly started the week on the front foot, with Paris and Frankfurt both ending the day up more than one percent. 'Investors seem to be taking an optimistic view… betting on an increased likelihood of further monetary easing by the Fed after Friday's employment figures,' said John Plassard, head of investment strategy at Cite Gestion Private Bank. CME's FedWatch tool now has investors seeing a 94.1% chance of the Fed making a quarter-point cut in interest rates at the next meeting in September. Plassard noted, however, that 'uncertainty reigns' as US President Donald Trump's latest round of tariffs are set to take effect on Thursday. Switzerland's stock market dropped around 2% at Monday's open, its first session as it returned from a holiday after a tough 39-percent US tariff rate was announced. But the index later pared most of its losses on hopes the Swiss government, which announced it would make an improved offer to Washington, could negotiate a reduction in the levy, which is steeper than that imposed on the European Union and Britain. London advanced, lifted by banking stocks after the sector was granted a reprieve from the worst of feared compensation claims over controversial car loans dating back to 2007. Lloyds Banking Group jumped 9% while Close Brothers, listed on the FTSE 250, soared more than 23%. Asian investors started the week mixed, with Hong Kong and Shanghai advancing while Tokyo fell. Stocks had struggled Friday as US jobs growth fell short of expectations in July, with revised data showing the weakest hiring since the Covid-19 pandemic – fuelling concerns that Trump's tariffs are starting to bite. Trump responded to the data by firing the commissioner of labour statistics, accusing her of manipulating employment data for political reasons. Markets reacted more favourably on Monday, as the hiring slowdown boosted hopes of Fed rate cuts to support the economy. Elsewhere, oil prices fell more than 2% after a sharp output increase by eight Opec+ countries, with markets anticipating abundant supply. However, they later trimmed their losses after Trump threatened to hike tariffs on Indian goods further over its purchases of Russian oil.
Sinar Daily
an hour ago
- Sinar Daily
Visa applicants may be required to post bond of up to US$15,000 to enter US
The bonds may be required for travelers from countries that the State Department identifies as having high rates of visa overstays, or deficient screening and vetting information, said the notice. 05 Aug 2025 10:55am An American flag waves outside the stadium prior to the FIFA Club World Cup 2025 group D match between CR Flamengo and Chelsea FC at Lincoln Financial Field on June 20, 2025 in Philadelphia, Pennsylvania. - (Photo by David Ramos / Getty Images via AFP) NEW YORK - The US State Department is set to roll out a pilot programme that may require foreign nationals seeking business or tourism visas to post a bond of up to US$15,000 to enter the United States, Xinhua reported. A preview of a bond notice posted on the Federal Register website on Monday stated that under the 12-month "visa bond pilot programme," consular officers could require certain business and tourist visa applicants to post guarantee bonds of US$5,000, US$10,000 or US$15,000. The programme will take effect 15 days after the notice is officially published on Tuesday. The bonds may be required for travelers from countries that the State Department identifies as having high rates of visa overstays, or deficient screening and vetting information, said the notice. The notice did not name the countries affected, but said the list will be released online at least 15 days before it takes effect. The proposal comes as the Trump administration continues to tighten visa requirements. Last week, the State Department announced that many visa renewal applicants would have to submit to an additional in-person interview, which was not required in the past. - BERNAMA More Like This
