Ringgit Rises Against Greenback Following Govt Response To Impact From US Reciprocal Tariffs
By Danni Haizal Danial Donald
KUALA LUMPUR, May 5 (Bernama) -- The ringgit ended higher against the US dollar at the close on Monday, amid the government's response towards the impact of the reciprocal tariff from the United States (US), said an analyst.
At 6 pm, the ringgit surged to 4.1990/2035 against the greenback, compared to last Friday's close of 4.2560/2600.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said today's special parliamentary meeting indicated that the government is being pragmatic in dealing with the tariff shocks enacted by US President Donald Trump.
'The session suggests that the government has acknowledged the fact that the tariff shocks are expected to impact the economy significantly, and they are ready to take necessary steps to mitigate the impact.
'It demonstrates the government's resolve to be forthcoming in their communication to the public. So, to some degree, this could help contribute to the confidence in our economy and the government and ultimately our ringgit,' he told Bernama.
Additionally, Mohd Afzanizam said that the better-than-expected non-farm payroll last Friday failed to resuscitate the value of the US dollar, with the US Dollar Index (DXY) continuing to linger at around 99 points.
SPI Asset Management managing partner Stephen Innes said a mix of regional optimism and domestic developments buoyed the ringgit's positive performance.
He said at the regional level, renewed hopes of a US-China tariff resolution have sparked a broad-based re-rating of Asian currencies, giving a notable boost to the ringgit.
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