Ringgit rises as US plans new tariffs on major partners
Over the weekend, US President Donald Trump announced plans to impose a 30% tariff on goods from the European Union and Mexico, and a 35% tariff on Canadian products.
At 8am, the ringgit strengthened to 4.2405/4.2635 against the greenback, compared with Friday's close of 4.2475/4.2525.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US had weaponised tariffs to gain economic advantage.
'Clearly, the tariff policy instrument has been weaponised by the US to address economic imbalances.
'This means downside risks to global growth remain elevated, while the risk of higher inflation especially in the US, is becoming more apparent, complicating the Federal Reserve's decision-making on rate cuts,' he noted.
Afzanizam added that the ringgit is expected to remain within a narrow range of RM4.24 to RM4.25 amid ongoing global uncertainties.
At the open, the ringgit was higher against a basket of major currencies.
It advanced against the Japanese yen to 2.8792/2.8950 from 2.8893/2.8929, strengthened against the British pound to 5.7234/5.7544 from 5.7524/5.7592, and gained versus the euro to 4.9546/4.9815 from 4.9679/4.9737 previously.
The local note was also firmer against most Asean currencies, except the Thai baht.
It rose vis-a-vis the Singapore dollar to 3.3119/3.3303 from 3.3186/3.3228, edged up against the Indonesian rupiah to 261.4/263.0 from 261.8/262.3, and appreciated versus the Philippine peso to 7.51/7.55 from 7.52/7.53.
However, it slipped against the Thai baht to 13.0916/13.1711 from 13.0668/13.0886 at Friday's close.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
an hour ago
- Free Malaysia Today
Traders fined at Penang fair for not being local residents
Screenshots from a now-deleted video showing Seberang Perai City Council enforcement officers issuing compound notices to traders at the fair in Bukit Mertajam. GEORGE TOWN : Local government enforcement officers have drawn flak after a video showing them fining stallholders at a trade fair in Bukit Mertajam went viral. In a now-deleted TikTok video shared by the Seberang Perai City Council (MBSP), enforcement officers were seen issuing compound notices to traders selling sarees and other Indian-themed goods. The officers were also heard describing the event, held earlier this month, as illegal. The traders at the concourse of the supermarket were told that they were in violation of two rules: they were not Penang residents, and they were selling 'Indian-themed items' outside the allowed period. 'I have an SSM licence, and I am a Malaysian, and you're saying I can't do business?' one shocked trader was heard asking, referring to the Companies Commission of Malaysia. The video then showed the MBSP officers speaking to the Kuala Lumpur-based event organiser, who appeared equally confused. The officers explained that under a state policy, only Penang residents could sell 'Indian-related' items and hold fairs. Non-Penangites could only trade their wares from April 1 to June 30, or during the 30 days before Deepavali. 'All Malaysians are welcome to trade their wares from April to June. No problem,' one officer was heard saying. The organiser refused to comment fearing repercussions. The fair was held from July 9 to 13 and deemed a 'big success', with a South Indian soap star gracing its opening. Such Indian-related fairs are common across the peninsula, where cheap wares and textiles are sold at prices lower than brick and mortar stores. Former MBSP councillor P David Marshel asked if such a policy was legal, saying it may go against Article 8 of the Federal Constitution, which guarantees equal treatment for all citizens. He urged the Penang government to clarify whether the policy had been formally approved, and to cancel the compound notices issued. Batu Uban assemblyman A Kumaresan said such a policy may risk creating a perception that Penang is not open to fair business practices. 'Restricting events to certain months may not be the best way forward. This could dampen growth and limit healthy competition between local and outside traders,' he said in a statement. He said while the rule may have been aimed at protecting local businesses from unfair competition, a more equitable solution would be to manage, not block, participation. 'I urge the state to review this policy and seek a more balanced, fair and business-friendly approach that benefits all,' he said. FMT has contacted MBSP and state executive councillor for local government H'ng Mooi Lye for comment.
Borneo Post
2 hours ago
- Borneo Post
13MP to dominate upcoming Dewan Rakyat session, expected to run late into the night, says Speaker
Johari says his office has received a wide range of motions from the MPs, indicating a packed and intense session ahead. – Bernama photo SUNGAI PETANI (July 18): The upcoming Dewan Rakyat session, scheduled to begin next Monday until August 28, is expected to run into the night with the main focus being the tabling and debate of the 13th Malaysia Plan (13MP). Speaker Tan Sri Johari Abdul said his office has received a wide range of motions from the honourable Members of Parliament (MPs), indicating a packed and intense session ahead. 'So I call on the people on the ground, when the 13MP is tabled, they have to inform their MPs about what they want to be raised in Parliament. 'Tag their MPs (on social media) so that their voices can be heard. Don't wait until the MPs return to their constituencies to complain. Raise the issue while Parliament is in session,' he said after officiating the National Information Dissemination Centre (NADI) at Taman Pekan Baru today. Johari said the sitting will probably be extended into the night to accommodate the packed schedule, beginning daily at 10am and possibly continuing until 10pm or 11pm. Johari noted that the tabling of the 13MP is particularly significant as Malaysia holds the Asean Chairmanship this year, and it offers an opportunity to showcase the country's resilience and progress amid global uncertainties. In another development, he urged the public to fully utilise services made available at NADI centres to improve their livelihoods and economic opportunities. 'NADI isn't just about digital access or community programmes. It can be a one-stop centre for people to obtain vital information and explore business opportunities. 'It's a platform to gain knowledge not only academically but also across various fields. I encourage youth, especially, to take advantage of these centres to learn and engage with their communities,' he said. NADI Taman Pekan Baru, which began operations on Feb 9, is one of four new centres established in Kedah under the '1 DUN 1 NADI' initiative, bringing the total number of NADI centres in the state to 81. – Bernama Dewan Rakyat Johari Abdul Nadi parliament session tabling of 13MP
Free Malaysia Today
3 hours ago
- Free Malaysia Today
Wall Street futures edge up as optimism over economy offsets Netflix's fall
The S&P 500 and the Dow are on track for only modest advances this week, as investors navigate a swirl of mixed signals. (AP pic) NEW YORK : US stock index futures inched higher today, buoyed by signs of a resilient US economy, even as Netflix's market-beating quarterly profit failed to dazzle investors. At 5.30am, S&P 500 E-minis were up 8.75 points, or 0.14%, Nasdaq 100 E-minis were up 33 points, or 0.14%, and Dow E-minis were up 66 points, or 0.15%. Wall Street's winning streak continued overnight, with the S&P 500 and the Nasdaq notching fresh record closes after upbeat data on retail sales and jobless claims signaled a healthy US economy. The data gives the Federal Reserve (Fed) some breathing room to assess the inflationary effects of US tariffs. Netflix rode the success of 'Squid Game' to top earnings estimates and boost its revenue outlook for the year. Yet, the streaming giant's shares slipped 1.5% in premarket trading. It has risen 43% this year. All eyes remain on whether President Donald Trump's tariff measures are starting to ripple through the economy. The Fed has signaled it will stay the course on interest rates until it sees clearer signs of how higher import taxes are shaping inflation. Traders now put the odds of a rate cut in September at about 56.3%, with a July move nearly off the table, according to CME's FedWatch tool. 'This week's data supports the wait-and-see camp on the Fed. 'Tariffs are percolating to consumer prices but is not withholding households from opening their wallets,' said Kenneth Broux, head of corporate research and rates, at Societe Generale. Fed governor Christopher Waller signaled yesterday that mounting economic risks and tame inflation have him backing an interest rate cut by this month's end, downplaying concerns that tariffs will fuel lasting price hikes. As the second-quarter earnings season gets underway, early results from 36 S&P 500 companies that reported, more than 80% have topped Wall Street's earnings expectations, according to LSEG I/B/E/S data. The S&P 500 and the Dow are on track for only modest advances this week, as investors navigate a swirl of mixed signals – robust retail sales, a spike in consumer inflation, and a stall in producer prices for June. Cryptocurrency stocks rose after the US House of Representatives passed a bill that would develop a regulatory framework for cryptocurrencies. Robinhood Markets and Coinbase Global gained 1.9% each, while Bitfarms rose 2.8% and Hut 8 advanced 1.3%.
