Ringgit loses ground as investors brace for US tariff deadline, regional trade tensions
At 6pm, the local note depreciated to 4.2245/2305 versus the greenback from yesterday's close of 4.1995/2005.
SPI Asset Management managing partner Stephen Innes said the ringgit, which had enjoyed solid momentum in recent weeks, is now facing headwinds as markets brace for the July 9 tariff deadline, with US President Donald Trump making it clear there will be no extension.
'With the deadline fast approaching, markets are shifting into defensive mode.
'Asia foreign exchange market feels like it is trading in the dark — nervous, reactive, and unsure where the next blow will come from,' he told Bernama.
Innes said that Trump's tough stance on Japan, particularly over rice and autos, has further fuelled regional tension, while his softened tone on India remains wrapped in diplomatic vagueness.
'Until clearer signals emerge, the market is expected to remain light on conviction and heavy on caution,' he added.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It eased versus the British pound to 5.7859/7941 from 5.7797/7866, and fell against the euro to 4.9748/9818 from 4.9566/9625 yesterday.
However, it appreciated against the Japanese yen to 2.9316/9360 from 2.9351/9389.
The local note was also traded lower against its Asean counterparts.
It slipped against the Indonesian rupiah to 259.9/260.5 from 258.9/259.4, weakened against the Philippine peso to 7.49/7.51 from 7.45/7.46, shed vis-à-vis the Singapore dollar to 3.3167/3217 from 3.3015/3059, and declined against the Thai baht to 13.0233/0482 from 12.9363/9585 previously. — Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
25 minutes ago
- The Star
Trump says tariff letters to 12 countries signed, going out Monday (July 7); Vietnam and Britain already agreed to trade deals
HANOI (Reuters): US President Donald Trump said he had signed letters to 12 countries outlining the various tariff levels they would face on goods they export to the United States, with the "take it or leave it" offers to be sent out on Monday. Trump, speaking to reporters aboard Air Force One as he traveled to New Jersey, declined to name the countries involved, saying that would be made public on Monday. Trump had earlier on Thursday told reporters that he expected a first batch of letters to go out on Friday, a national holiday in the United States, though the date has now shifted. In a global trade war that has upended financial markets and set off a scramble among policymakers to guard their economies, Trump in April announced a 10% base tariff rate and additional amounts for most countries, some ranging as high as 50%. However, all but the 10% base rate were subsequently suspended for 90 days to allow more time for negotiations to secure deals. That period ends on July 9, although Trump early on Friday said the tariffs could be even higher - ranging up to 70% - with most set to go into effect August 1. "I signed some letters and they'll go out on Monday, probably twelve," Trump said, when asked about his plans on the tariff front. "Different amounts of money, different amounts of tariffs." Trump and his top aides initially said they would launch negotiations with scores of countries on tariff rates, but the U.S. president has soured on that process after repeated setbacks with major trading partners, including Japan and the European Union. He touched on that briefly late on Friday, telling reporters: "The letters are better ... much easier to send a letter." He did not address his prediction that some broader trade agreements could be reached before the July 9 deadline. The shift in the White House's strategy reflects the challenges of completing trade agreements on everything from tariffs to non-tariff barriers such as bans on agricultural imports, and especially on an accelerated timeline. Most past trade agreements have taken years of negotiations to complete. The only trade agreements reached to date are with Britain, which reached a deal in May to keep a 10% rate and won preferential treatment for some sectors including autos and aircraft engines, and with Vietnam, cutting tariffs on many Vietnamese goods to 20% from his previously threatened 46%. Many US products would be allowed to enter Vietnam duty free. A deal expected with India has failed to materialize, and EU diplomats on Friday said they have failed to achieve a breakthrough in trade negotiations with the Trump administration, and may now seek to extend the status quo to avoid tariff hikes. (Reporting by Andrea Shalal and Jasper Ward; Editing by William Mallard and Shri Navaratnam) - Reuters
Daily Express
5 hours ago
- Daily Express
MCCC warns against politicising court cases
Published on: Saturday, July 05, 2025 Published on: Sat, Jul 05, 2025 By: Noor Zafira Zayn Text Size: KOTA kINABALU: The Malaysia-China Chamber of Commerce (MCCC) Sabah has warned that politicising court cases risks undermining investor confidence and damaging Sabah's economic reputation. Its Deputy Director of Trade Affairs, Brian Wong (pic), urged political leaders, the media and the public to exercise restraint and avoid speculation on judicial matters, especially cases still pending in court. Advertisement He said in a statement on Saturday that public discourse must respect the independence of enforcement authorities and the judiciary to ensure continued trust in Sabah's governance. Wong stressed that politically charged narratives have real-world consequences, potentially deterring investors and weakening confidence in the state's economic environment. He also highlighted the seriousness of the ongoing case involving key institutions, calling for calm and respect for due process to safeguard Sabah's stability and reputation. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Free Malaysia Today
5 hours ago
- Free Malaysia Today
Vietnam posts 7.5% growth in first half of 2025
Hanoi has targeted full year growth of at least 8%. (EPA Images pic) HANOI : Vietnam announced today its economy grew 7.52% in the first half of 2025, the highest in more than a decade. The strong growth figure comes just days after Vietnam averted the most punishing of US President Donald Trump's threatened 'reciprocal' tariffs on its exports. 'GDP in the first six months of 2025 increased by 7.52% over the same period last year, the highest level of the first six months in the period 2011-2025,' the General Statistics Office said in a statement. The country achieved growth of 7.96% in the second quarter over the same period last year, the highest Q2 reading since 2022 when it hit 8.56%. Hanoi has targeted full year growth of at least 8%. 'Our country's socio-economic performance in the second quarter and the first six months of 2025 achieved very positive results, approaching the set target in the context of many uncertainties in the world and regional economy,' the GSO statement said. Vietnam's trade deal with the US announced this week has negotiated levies down from 46% to a minimum 20% in return for opening its market to US products. Vietnam has the third-biggest trade surplus with the US of any country after China and Mexico, and was targeted with one of the highest rates in the US president's tariff blitz.
