Latest news with #US dollar
South China Morning Post
2 days ago
- Business
- South China Morning Post
Analysts say a weaker US dollar could be both good and bad for Hong Kong
A weaker US dollar could serve as a double-edged sword for Hong Kong, according to analysts. While a falling US dollar was likely to lure global investors back to Hong Kong's stock and property markets , it could also contribute to higher inflation and lower asset values, analysts said. Because Hong Kong's currency is pegged to the US dollar, a weaker US currency would also weaken the local currency, making imports more expensive and driving up inflation, said Kai Wang, a market strategist at Morningstar, on Monday. 'This would [make it] hard for the banks to lower interest rates, thereby driving down rental yields and making it harder to borrow to buy property, thus lowering property values,' he said. This in turn could impact the stock market. In a report published over the weekend, US investment bank Morgan Stanley said it expected the US dollar to weaken over the next 12 months to a level last seen nearly four years ago. The US dollar index (DXY), which measures the currency against a basket of six others, was expected to decline to 91 by mid next year – a level last seen on June 16, 2021, Morgan Stanley said. '[The US dollar] has bucked consensus in 2025 and had its worst year-to-date performance in over two decades,' the bank said. The currency started to weaken in mid-January and recorded some of its steepest declines since President Donald Trump imposed hefty tariffs on China and other trading partners, sending investors to seek cover with other assets. On Monday, the DXY was at 99, a level last seen in April 2022.
Malay Mail
3 days ago
- Business
- Malay Mail
Analysts: Ringgit faces choppy waters next week on US tariff uncertainty, Fed watch
KUALA LUMPUR, June 1 — The ringgit is likely to be traded cautiously against the US dollar next week amid ongoing uncertainties surrounding US tariff policy developments, said Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid. This follows renewed market uncertainty after a US federal appeals court granted the White House's request to temporarily pause a lower-court ruling that struck down President Donald Trump's tariffs on imports into the country. Earlier, the US Court of International Trade had ruled that the tariffs announced by Trump were illegal. However, the Trump administration challenged the ruling, which has briefly restored the tariffs while the appeal process runs its course. Besides that, he said attention will also turn to the upcoming US Federal Reserve's Federal Open Market Committee (FOMC) meeting scheduled for June 16-17. 'Key US economic indicators, particularly labour market data and inflation figures, will be closely watched. 'Important data releases such as nonfarm payrolls, the unemployment rate, and the Institute for Supply Management manufacturing index will serve as critical guidance for investors and traders,' he told Bernama, adding that current data suggests a moderating growth outlook. Hence, Mohd Afzanizam said the FOMC is likely to maintain its interest rate stance, given that tariff-related policies could pose future inflationary risks. Given these developments, he opined that the USD/MYR is expected to remain within the RM4.22–RM4.24 range in the coming week. The ringgit ended the week lower against the US dollar, closing at 4.2530/2605 on Friday from 4.2285/2345 a week earlier. The local note traded lower against a basket of major currencies. The ringgit depreciated versus the euro to 4.8169/8254 at Friday's close from 4.7985/8053 at the end of last week. It also fell vis-à-vis the Japanese yen to 2.9531/9585 from 2.9502/9546 and inched down against the British pound to 5.7284/7385 from 5.7072/7153 a week earlier. However, the ringgit traded mostly higher against ASEAN currencies. The local note improved against the Philippine peso to 7.62/7.64 from 7.65/7.66 a week before, edged up against the Indonesian rupiah to 260.4/261.1 from 260.7/261.1 and strengthened versus the Thai baht to 12.9507/9790 from 12.9744/13.0012 last week. However, it weakened versus the Singapore dollar to 3.2938/3002 on Friday from 3.2891/2940 the previous week. — Bernama
ABC News
27-05-2025
- Business
- ABC News
US dollar dive threatens Australian superannuation
Sabra Lane: When Australia's Reserve Bank cut official interest rates last week, it did so because it was partly worried about the risk of a severe downside scenario for global trade. Economists say that risk has just increased with a steep fall in the value of the US dollar that we might all feel the fallout. Business correspondent David Taylor explains. David Taylor : The US dollar, the world's reserve currency, is flirting with a three-year low and its steep decline has veteran economist Saul Eslake worried. Saul Eslake : The reason for the decline in the US dollar is that financial markets are becoming increasingly apprehensive about a number of aspects of the US economy as a result of things that the Trump regime is doing. David Taylor : That apprehension is also showing up in higher long-term US interest rates, including the 30-year government bond rate, now roughly 5%. Saul Eslake : I mean, apprehension is probably putting it at its mildest. In some quarters, there is, if not panic, then certainly alarm. David Taylor : The distress relates to the connection between elevated long-term bond interest rates and the rising cost of millions of American mortgages. Saul Eslake : And with the 30-year bond yield in the US now higher than at any time since before the global financial crisis, that means that mortgage rates are going up. David Taylor : This, he says, could seriously harm the world's biggest economy. Australian mortgage borrowers on fixed interest rate loans, Saul Eslake says, are also in the firing line. Saul Eslake : Fixed rates for mortgages and for business loans, the longer out you go, the more influenced they are by US government bond yields. David Taylor : The falling US dollar, analysts say, is also pushing the Australian dollar higher. While that's good news for Australian travellers, FN Arena's Danielle Ecuyer says it's a risk for anyone holding US investments, and that includes Australians with superannuation. Danielle Ecuyer : We know that a lot of Australian investors have been piling into US stocks. And this is just one of the aspects of, I think, probably where people go, well, that's great. US assets are going up. But the problem is the US dollar is going down. So in Australian currency times, you're not doing as well. David Taylor : Saul Eslake sees the financial dangers for the US economy rising. That's because, he says, the cost of US government debt is higher than America's economic growth rate, which he points out can make servicing government debt incredibly challenging. Saul Eslake : And at its most extreme example, that's what happened to Greece 13 years ago. David Taylor : Official inflation data will be released later today, which, if low enough, could open the door to some additional relief for Australian mortgage borrowers on variable interest rates.
Free Malaysia Today
26-05-2025
- Business
- Free Malaysia Today
Ringgit ends higher amid sudden US trade policy shifts
KUALA LUMPUR : The ringgit continued its upward momentum to close higher against the US dollar today, as sudden shifts in US trade policies and growing concerns over the US fiscal policy pushed the US dollar index (DXY) lower. Meanwhile, US president Donald Trump's decision to postpone the planned 50% tariffs on EU goods to July 9 gave both sides more time to reach a deal. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said concerns over the US economy are gaining traction as higher US Treasury yields would likely significantly impact the US economy. 'The next thing to watch is whether the 'One Big Beautiful Bill', which is seen as likely to result in a wider fiscal deficit, will be passed by the US Senate. 'For now, the view of the US fiscal position is rather negative as reflected by the rise in US Treasury yields and the US dollar outlook,' he told Bernama. At 6pm, the local currency rose to 4.2155/4.2220 versus the US dollar from last Friday's close of 4.2285/4.2345. The ringgit traded mostly lower against a basket of major currencies at the close. It gained vis-à-vis the euro to 4.7972/4.8046 from 4.7985/4.8053 last Friday. However, it fell against the British pound to 5.7175/5.7263 from 5.7072/5.7153 and slid marginally versus the Japanese yen to 2.9506/2.9553 from 2.9502/2.9546. The local currency, however, traded higher against its Asean peers. It improved against the Singapore dollar to 3.2826/3.2879 from 3.2891/3.2940 last Friday, strengthened against the Thai baht to 12.9231/12.9466 from 12.9744/13.0012, and advanced vis-à-vis the Philippine peso to 7.60/7.62 from 7.65/7.66. The ringgit also rose against the Indonesian rupiah to 259.4/259.9 from 260.7/261.1.
Malay Mail
26-05-2025
- Business
- Malay Mail
Ringgit strengthens against US dollar as market reacts to Trump's tariff delay, fiscal concerns
KUALA LUMPUR, May 26 — The ringgit continued its upward momentum to close higher against the United States (US) dollar today as sudden shifts in US trade policies and growing concerns over the US fiscal policy pushed the US dollar index (DXY) lower. At 6pm, the local note rose to 4.2155/2220 versus the US dollar from last Friday's close of 4.2285/2345. Meanwhile, US President Donald Trump's decision to postpone the planned 50 per cent tariffs on European Union (EU) goods to July 9 gave both sides more time to reach a deal. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said concerns over the US economy are gaining traction as higher US Treasury yields would likely significantly impact the US economy. 'The next thing to watch is whether the 'One Big Beautiful Bill', which is seen as likely to result in a wider fiscal deficit, will be passed by the US Senate. 'For now, the view of US fiscal position is rather negative as reflected by the rise in US Treasury yields and the US dollar outlook,' he told Bernama. The ringgit traded mostly lower against a basket of major currencies at the close. It gained vis-à-vis the euro to 4.7972/8046 from 4.7985/8053 last Friday. However, it fell against the British pound to 5.7175/7263 from 5.7072/7153 and slid marginally versus the Japanese yen to 2.9506/9553 from 2.9502/9546. The local note, however, traded higher against its Asean peers. It improved against the Singapore dollar to 3.2826/2879 from 3.2891/2940 last Friday, strengthened against the Thai baht to 12.9231/9466 from 12.9744/13.0012, and advanced vis-à-vis the Philippine peso to 7.60/7.62 from 7.65/7.66. The ringgit also rose against the Indonesian rupiah to 259.4/259.9 from 260.7/261.1. — Bernama
