Latest news with #AbdulHamidARahman
Barnama
4 days ago
- Business
- Barnama
Concerns Over US Fiscal Position Dampen The Dollar
BUSINESS By Abdul Hamid A Rahman KUALA LUMPUR, May 30 (Bernama) -- The US dollar continues to weaken, pressured by concerns over the United States (US) fiscal outlook, including rising debt, widening deficits and increased government spending, alongside trade tensions and shifting global investments. SPI Asset Management managing partner Stephen Innes said the dollar's recent weakness is tied to deeper issues in the US economy, and not just interest rate changes. "The dollar's weakness has very little to do with interest rates. In fact, the relationship between the dollar and US Treasury yields, which used to be strong, has now broken down completely. Investors are losing trust in US policies and are worried about the country's growing debt,' he told Bernama. Innes pointed out that a major factor in the dollar's decline is the growing shift of Asia's investments away from US assets. 'Asia is starting to pull back its US$5 trillion to US$7 trillion investments in US Treasuries, signalling a strategic change in how Asia views US assets. "Asia's confidence in US assets is fading, which is contributing to the pressure on the dollar," he said. Innes indicated that US fiscal issues, including the impact of President Donald Trump's "Big Beautiful Bill," are likely to expand the US deficit. "The tax cuts and increased spending under this policy are making the deficit worse, and that is negative for the dollar," he said.
Barnama
27-05-2025
- Business
- Barnama
RINGGIT OPENS HIGHER AS US TRADE POLICY UNCERTAINTY, FISCAL CONCERNS WEIGH ON DOLLAR
WORLD By Abdul Hamid A Rahman KUALA LUMPUR, May 27 (Bernama) -- The ringgit opened higher against the US dollar today, buoyed by continued weakness in the greenback amid growing concerns over the United States' (US) fiscal trajectory and trade policy inconsistencies. At 8.05 am, the ringgit rose to 4.2050/2250 against the US dollar compared with Monday's close of 4.2155/2220. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) had extended its downward trend, falling to 98.934 points, as investors grew wary of the direction of US trade policy under President Donald Trump. 'The delay in implementing the 50 per cent tariff on European Union goods until July 9, 2025, signals uncertainty in the Trump administration's trade stance, undermining confidence in the US dollar. 'Furthermore, the expansionary fiscal measures, which are expected to widen the US fiscal deficit and increase national debt levels, have further weighed on sentiment towards US assets,' he told Bernama. Mohd Afzanizam said that against this backdrop, emerging market currencies, including the ringgit, continued to appreciate, supported by improving capital inflows and better risk appetite. 'Market trends suggest the ringgit could maintain its positive momentum in the immediate term, especially if the US maintains its current policy tone,' he said. The ringgit traded higher against a basket of major currencies at the close.
Barnama
15-05-2025
- Business
- Barnama
Extend ECRL To Sungai Golok To Boost Malaysia-Thailand Trade
15/05/2025 09:13 AM By Abdul Hamid A Rahman and Mikhail Raj Abdullah KUALA LUMPUR, May 15 (Bernama) -- Thailand's ambassador to Malaysia, Lada Phumas, has suggested that Malaysia's East Coast Rail Link (ECRL) project, which starts in Kota Bharu, be extended to the Sungai Golok border to enhance rail connectivity between Thailand and Malaysia. She said the connection at the border is crucial for improving trade and logistics between the two neighbours. 'We have a rail station in Sungai Golok for which we must now explore ways to revitalise and utilise so that ECRL can be extended and connected to the rail network on Thailand's side. From there, it could be connected to Hatyai - the neighbouring border town of Padang Besar on Malaysia's side, which could facilitate better logistical integration and enhance regional rail connectivity,' she told Bernama in an interview today. The ambassador said that interconnecting rail systems across the region, linking Singapore, Malaysia, Laos, and China, with the potential for further extensions, will strengthen regional ties. She said the Pan-Asia Railway Network (PARN) project is a key infrastructure initiative, connecting China, Singapore and all countries in mainland Southeast Asia. Malaysia is actively developing its segment of the network, which aims to establish a continuous double-track railway from Johor Bahru to Padang Besar in Perlis. Phumas said that such interconnection would promote trade, enhance mobility and deliver substantial economic benefits for both countries. 'Improved rail connectivity would provide a more affordable and efficient alternative for freight transport, compared to air and road options,' she said. In addition to rail connectivity, Phumas said there are opportunities for collaboration between Malaysia and Thailand in the halal industry and related supply chains. 'Thailand can supply ingredients and raw materials that Malaysia may be lacking, while Malaysia can leverage its expertise in halal certification to strengthen and expand the halal supply chain. This collaboration could prove mutually beneficial for both countries and open up significant opportunities in markets, particularly in the Gulf Cooperation Council (GCC) countries,' she added.
Barnama
14-05-2025
- Business
- Barnama
Ringgit Ends Firmer Against Greenback As US Inflation, Treasury Yields Ease
WORLD By Abdul Hamid A Rahman KUALA LUMPUR, May 14 (Bernama) -- The ringgit closed firmer against the American dollar on Wednesday, supported by improved risk sentiment following a lower-than-expected US inflation reading and easing US Treasury yields. At 6 pm, the local note appreciated to 4.2840/2910 versus the greenback compared to Tuesday's close of 4.3185/3250. SPI Asset Management managing partner Stephen Innes said the Malaysian ringgit strengthened today after US yields eased following a softer-than-expected April inflation report, giving room for Asian currencies, including the ringgit, to recover. 'While long-term US interest rates remain elevated, markets are starting to reassess the inflation outlook, as the expected price pressures from recent tariff announcements have yet to materialise. US President Donald Trump's new import tariffs were expected to trigger a near-term price spike, but April's inflation data showed no notable increases in the categories likely to be affected,' he told Bernama. He noted that the foreign exchange market was subdued today, with movements largely driven by external factors rather than domestic developments. At the close, the ringgit traded lower against a basket of major currencies. It declined against the Japanese yen to 2.9373/9425 from 2.9181/9227, fell against the euro to 4.8204/8282 from 4.7961/8033 and dropped against the British pound to 5.7191/7285 from 5.7056/7142 previously. The local note was traded higher against its ASEAN peers.
