Ringgit poised for cautious trading as US tariff concerns linger
In a research note, Kenanga Investment Bank Bhd stated that the ringgit should find support from domestic economic stability and a softer US dollar, likely holding near current levels.
'President Donald Trump's proposed chips and pharmaceutical tariffs will likely dampen sentiment in risk assets. Investors are also tracking pressure on BRICS and signs of strain in the US-China trade detente.
'Trump's rapid-fire policy moves and media headlines continue to drive market uncertainty,' it said.
Hence, the research house said the ringgit traded higher last week, hovering within the range of 4.23 to 4.24 after a weaker-than-expected US jobs report pulled the greenback lower.
On a Friday-to-Friday basis, the ringgit ended last week higher against the greenback, closing at 4.2420/2480 versus 4.2750/2815 previously.
However, the local note traded lower against a basket of major currencies.
The ringgit depreciated vis-à-vis the Japanese yen to 2.8720/8763 last Friday from 2.8407/8452 the previous week, declined against the British pound to 5.7034/7114 from 5.6208/6293 and eased versus the euro to 4.9381/9451 from 4.8752/8826.
The ringgit also trended lower against Asean currencies.
The local note slipped against the Singapore dollar to 3.3014/3064 at the end of last week from 3.2907/2960, inched down versus the Thai baht to 13.1173/1419 from 13.0058/0319, slid versus the Indonesian rupiah to 260.3/260.8 from 258.8/259.4 and edged down against the Philippine peso to 7.43/7.44 from 7.35/7.36 in the preceding week. — Bernama
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