Ringgit Extends Gains To Close Higher Amid Japan Political Uncertainty
By Fatin Umairah Abdul Hamid
KUALA LUMPUR, July 21 (Bernama) -- The ringgit extended its gains against the US dollar at Monday's close, as the greenback struggled to appreciate amid political uncertainties in Japan, said an analyst.
At 6 pm, the ringgit rose to 4.2320/2365 against the greenback, compared to Friday's close of 4.2410/2455.
SPI Asset Management managing partner Stephen Innes said the ringgit trended higher, supported by the election setback for Japan's Prime Minister Shigeru Ishiba's coalition, which did not trigger broader market volatility.
'The absence of contagion allowed Asian and other emerging market currencies, including the ringgit, to edge higher and strengthen modestly,' he told Bernama.
Echoing Innes, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit traded firmer in tandem with a 0.13 per cent decline in the US Dollar Index to 98.268 points, as major currencies such as the euro, yen, and the British pound all appreciated against the greenback.
'Despite uncertainties surrounding Japanese politics, the US dollar is struggling to appreciate, yet this has not resulted in a weak Japanese yen,' he said.
On that note, Mohd Afzanizam said the ringgit was generally firmer against the US dollar, with the pair hovering around RM4.2375 in the afternoon, compared to RM4.2493 during the morning session.
At the close, the ringgit was traded mostly higher against a basket of major currencies.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
US, EU trade talks boosted by Trump's agreement with Japan
FILE PHOTO: Stacked containers and cranes are shown at the Port of Los Angeles in Los Angeles, California, U.S., November 22, 2021. REUTERS/Mike Blake/File Photo BRUSSELS/WASHINGTON (Reuters) -The European Union and the U.S. are heading for a potential trade deal that includes a 15% U.S. baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday, potentially moving President Donald Trump closer to securing another major trade agreement hours after he unveiled one with Japan. European negotiators were hoping to reach an agreement to dodge the 30% tariff rate Trump has said he would impose on imports from the 27-nation blocon August 1. The rate, which could also extend to cars, would mirror the framework agreement the U.S. has struck with Japan, which Trump announced late on Tuesday. The deal could include exemptions for some EU goods, the diplomats said. As talks continued, the European Commission said it would press on with potential counter-measures in case a deal was not reached. EU member states were set to vote on 93 billion euros of counter-tariffs on U.S. goods on Thursday, European diplomats said. A broad majority of members support using anti-coercion instruments if there is no deal, they said. Trump was hoping for a boost from the complicated deal reached with Japan, the largest foreign investor in the U.S., which included a $550 investment and loan pledges from Japan and its commitment to buy 100 Boeing airplanes and boost purchases of U.S. agricultural products. Tariffs on Japan's auto sector will drop from 27.5% to 15% as part of the agreement, reviving hopes for a similar deal for EU cars. Asian and European stock markets rallied as investors cheered that agreement, but U.S. stocks showed a more modest rise and earnings reports were gloomy. U.S. businesses making everything from chips to steel reported downbeat results on Wednesday, revealing how the Trump administration's chaotic trade policy has hurt profits, added to costs, upended supply chains and weighed on consumer confidence. Trump said late on Tuesday that other countries would be coming for talks this week and governments were scrambling to close trade deals before next week's deadline that the White House has repeatedly pushed back under pressure from markets and intense lobbying by industry. AUTO TARIFFS Automobile stocks led the climb of European shares after the Japan deal spurred hopes that the U.S. was budging over tariffs on EU cars. EU officials have previously said Washington has shown little sign of doing so. U.S. Treasury Secretary Scott Bessent said in an interview with Bloomberg Television that Japan received the 15% rate on auto tariffs "because they were willing to provide this innovative financing mechanism" that he did not think other countries could replicate. Trump, however, has appeared open to a range of options as the U.S. negotiates trade deals. "I will only lower tariffs if a country agrees to open its market," Trump wrote in a social media post on Wednesday. In addition to talks in Washington, the European Trade Commissioner Maros Sefcovic planned to speak with U.S. Commerce Secretary Howard Lutnick on Wednesday from Brussels. (Reporting by Philip Blenkinsop in Brussels and Trevor Hunnicutt in Washington; Additional reporting by Bhargav Acharya and Susan Heavey; Writing by Doina Chiacu; Editing by Paul Simao)
New Straits Times
2 hours ago
- New Straits Times
PM: Tokenisation and digital assets must benefit all
KUALA LUMPUR: The government will continue to ensure that the implementation of tokenisation and digital assets is inclusive, said Prime Minister Datuk Seri Anwar Ibrahim. In a post on X last night, the Prime Minister said the implementation would also deliver broad benefits to the people and be strictly regulated to ensure the safety and stability of the country's digital ecosystem. Anwar, who is also the Finance Minister, chaired the second Digital Assets and Artificial Intelligence Advisory Council meeting of the year today, which focused on the future of digital assets in Malaysia's capital market. "Among the main agenda items discussed were developments in blockchain technology, tokenisation, post-quantum cryptography, and the launch of the Malaysia Blockchain Infrastructure (MBI), which is a key driver of the nation's digital ecosystem." "This meeting also served as a platform to exchange views on global market trends, the potential of digital assets, and future performance expectations based on technical perspectives from strategic partners," he added. On May 6, the Malaysian Securities Commission issued a consultation paper to gather public feedback on the proposed framework for tokenised capital market products. The paper seeks input on key areas including governance controls, record-keeping and registration requirements, technology risk management, and additional requirements for licensed individuals dealing with tokenised capital market products.– BERNAMA
Barnama
3 hours ago
- Barnama
PM's Announcement Shows MADANI Gov't Committed To Easing People's Burden
GENERAL KUALA LUMPUR, July 23 (Bernama) -- Leaders of state governments have described Prime Minister Datuk Seri Anwar Ibrahim's announcement of several initiatives today as proof of the continued concern and commitment of the MADANI Government in assisting to ease the people's burden. In NEGERI SEMBILAN, Menteri Besar Datuk Seri Aminuddin Harun said the initiatives announced, including the one-time provision of RM100 under the Sumbangan Asas Rahmah (SARA) programme and petrol price reduction, are a good start and can ease the people's burden. "Such announcements give meaning to the people... for those in need, it is a very meaningful gift and can help them in their daily lives,' he told reporters after chairing the state executive council meeting in Seremban today. Aminuddin, who is also the Port Dickson Member of Parliament, said the state government welcomed the good news and is confident it can encourage the people to continue to be positive in facing daily life challenges. He added that the government's decision to multiply the MADANI Rahmah Sales and double the allocation for the programme to RM600 million was also the best initiative that will significantly benefit the people. In MELAKA, the state government will plan tourism activities for visitors in conjunction with the additional public holiday on Sept 15 to further invigorate the tourism sector in the state as part of its new industry, said Chief Minister Datuk Seri Ab Rauf Yusof. "I will make this tourism sector a new industry in Melaka… it will have all kinds (of tourism activities in Melaka), covering air, land and sea,' he told reporters outside the State Legislative Assembly sitting today. In SELANGOR, Menteri Besar Datuk Seri Amirudin Shari described the announcement of the one-off RM100 aid through MyKad under SARA as proof of the MADANI Government's care and concern towards the people's plight. He said that with 22 million Malaysians set to benefit from the total allocation of RM2 billion via SARA, it will help propel the economic cycle forward through the expected spending or purchase transactions.
