Ringgit slightly up against US dollar amid cautious sentiment
KUALA LUMPUR : The ringgit opened slightly higher against the US dollar on Tuesday amid caution about the outcome of trade talks between China and the US.
At 8 am, the local note made a small rebound to 4.2275/4.2370 against the greenback compared to Monday's close of 4.2290/4.2345.
Bank Muamalat Malaysia Bhd's chief economist, Afzanizam Rashid, said the US dollar index (DXY) was down 0.25% to 98.939 points as the US and China trade talks proceeded as planned, with positive indications from US officials about the negotiations.
He highlighted that data from China showed the country's trade with the US has been declining significantly, with exports and imports falling 34.5% and 18.1%, respectively, in May.
'The figures represented the second consecutive month of contraction, showing that the tariff shocks have had a significant impact on international trade. Meanwhile, the negative print for China's consumer price index has been ongoing for four consecutive months, with the latest reading standing at minus 0.1% year-on-year in April, indicating a challenging economic outlook given weak demand,' he added.
Afzanizam noted that the USD/MYR remained in a narrow range between RM4.231 and RM4.2458 yesterday amid cautious sentiment among traders and investors, with a similar trend expected to continue today.
In early trade, the ringgit traded higher against a basket of major currencies.
It rose against the Japanese yen to 2.9242/2.9310 from Monday's 2.9344/2.9384, appreciated versus the British pound to 5.7300/5.7428 from 5.7392/5.7466 and gained vis-à-vis the euro to 4.8303/4.8412 from 4.8316/4.8379.
The local currency traded mixed against most of its Asean peers.
It improved versus the Singapore dollar to 3.2876/3.2952 from 3.2908/3.2953 but fell against the Thai baht to 12.9463/12.9846 from 12.9414/12.9642 on Monday.
It traded almost flat vis-à-vis the Indonesian rupiah at 259.4/260.1 from 259.5/260.0 and was unchanged against the Philippine peso at 7.57/7.59.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
21 minutes ago
- Malay Mail
SST expansion won't hit residential contractors, says RHB
KUALA LUMPUR, June 10 — The upcoming sales and service tax (SST) revision and expansion is unlikely to affect contractors primarily involved in residential housing, such as MGB Bhd and Kerjaya Prospek Group Bhd, according to RHB Investment Bank Bhd. However, it said contractors involved in constructing commercial, industrial, and infrastructure projects — Sunway Construction Group Bhd, Gamuda Bhd, and IJM Corporation Bhd — will be imposed with the six per cent services tax for construction services. 'Contractors could factor in the six per cent services tax when bidding for new projects. 'For ongoing projects, contractors could likely readjust or reprice the contract sum for reviewable contracts to take into account the latest expanded services tax,' it said in a research note today. To recap, the Finance Ministry said the reviewed and expanded SST announced in Budget 2025 will be effective July 1, 2025, with a five to 10 per cent sales tax to be imposed on selected non-essential goods. The service tax will be expanded to include services such as construction services, which would see a 6.0 per cent service tax applied to providers exceeding RM1.5 million in annual revenue. Meanwhile, RHB Investment Bank said residential buildings and public housing-related works are exempt from sales tax. Exemptions also apply to business-to-business transactions to avoid double taxation. 'We also take comfort that under the sales tax revision, the government is maintaining a rate of zero per cent for basic construction materials,' it said. On the other hand, the investment bank said the data centres, the main construction segment theme, are likely to remain intact despite the expanded SST. "Assuming a hyperscaler hypothetically has three new data centre projects in Malaysia worth RM1 billion each to be awarded to a contractor, the services tax on the contractor's work would amount to RM60 million per project or RM180 million in total. 'This represents approximately 0.2 per cent of the financial year 2024 net income of hyperscalers such as Google and Microsoft,' it said. It has maintained its 'Overweight' call on the construction sector. — Bernama
Malay Mail
21 minutes ago
- Malay Mail
Bursa holds gains at lunch break despite softer market sentiment
KUALA LUMPUR, June 10 — Bursa Malaysia ended the morning trading session in positive territory, though the tone remained soft due to mixed regional performances, with buying interest expected to shift towards fundamentally strong companies. At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 2.08 points to 1,521.49, from Monday's close of 1,519.41. The benchmark index opened 0.30 points higher at 1,519.71, and subsequently fluctuated between 1,517.74 and 1,522.30 throughout the session. Advancers edged ahead of decliners at 384 versus 381 on the broader market, while a total of 466 counters were unchanged, 1,138 untraded and 11 suspended. Turnover stood at 1.79 billion units, valued at RM883.18 million. Malacca Securities Sdn Bhd said the local bourse is expected to see subdued trading, as investors' attention may shift to fundamentally strong companies. Wall Street is expected to focus on the United States-China trade talks, which have driven modest gains in equities as officials hinted at progress ahead of the resumption of negotiations on Tuesday. 'As the market factors a rate-cut environment, Real Estate Investment Trusts could attract interest due to their healthy yields of over four per cent,' it said in a research note today. Among the heavyweights, 99 Speed Mart added nine sen to RM2.19, Axiata was six sen better at RM2.09, Public Bank rose two sen to RM4.28 and Telekom Malaysia added nine sen to RM6.65, while MR DIY and Press Metal bagged three sen each to RM1.64 and RM5.03, respectively. As for the most active stocks, MYEG, Harvest Miracle and NEXG were all flat at 94.5 sen, 18 sen and 37 sen, respectively, while Tanco lost 2.5 sen to 96.5 sen. On the index board, the FBM Emas Index added 24.54 points to 11,417.73, the FBMT 100 Index gained 24.84 points to 11,183.31, and the FBM Emas Shariah Index climbed 30.60 points to 11,394.64. The FBM 70 Index advanced 74.24 points to 16,483.55, while the FBM ACE Index erased 5.83 points to 4,506.30. Sector-wise, the Energy Index gained 1.19 points to 722.05, and the Industrial Products and Services Index perked up 0.12 of a point to 152.46. Meanwhile, the Financial Services Index eased 3.35 points to 17,728.85 and the Plantation Index declined 13.21 points to 7,235.62. — Bernama
Free Malaysia Today
26 minutes ago
- Free Malaysia Today
China, South Korea must safeguard free trade, Xi tells Lee
Seoul has long trod a fine line between top trading partner China and defence guarantor the US. (Links pic) BEIJING : Chinese leader Xi Jinping urged South Korea's new President Lee Jae-myung today to work with Beijing to uphold free trade and defend 'multilateralism', state media said. 'In a phone call with Lee, Xi urged Beijing and Seoul to 'inject more certainty into regional and international situations',' Xinhua said, as well as to 'promote strategic cooperative partnership to a higher level'. 'A healthy, stable, and continuously deepening China–South Korea relationship aligns with the trend of the times,' Xi said. 'Close bilateral cooperation and multilateral coordination should be maintained to jointly uphold multilateralism and free trade, ensuring the stability and smooth functioning of global and regional industrial and supply chains,' the Chinese leader added. South Korea's new centre-left leader was elected in a landslide last week after winning a snap election triggered by his predecessor's disastrous martial law declaration. Seoul has long trod a fine line between top trading partner China and defence guarantor the US. Relations suffered under Lee's predecessor Yoon Suk Yeol, who cleaved close to the US and sought to improve ties with former colonial master Japan. However, both countries' export-driven economies have now found themselves in the crosshairs of US President Donald Trump's tariff blitz. Lee hinted on the campaign trail that he would seek to improve ties with Beijing. He has also raised alarm by saying that a future conflict between China and Taiwan would not be South Korea's concern.
