KUALA LUMPUR — The ringgit weakened against the US dollar at close today, after reaching a nearly three-week high, highlighting the challenges of breaking below the RM4.40 level following US President Donald Trump’s
announcement that tariffs on Mexico and Canada would proceed as planned.
By 6pm, the ringgit depreciated to 4.4210/4255 from 4.4080/4110 at Monday’s close.
Bank Muamalat Malaysia Bhd’s chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index (DXY) had gained traction, rising to 106.632 points.
He said the one-month deadline for delaying tariffs on Canada and Mexico is approaching, and President Trump appears poised to increase the tariffs if no concessions are made.
Additionally, the Trump administration is likely to intensify measures against China by restricting microchip exports and encouraging the US allies to do the same.
“It is a back-and-forth situation regarding tariff concerns, and intermittently, it exerts pressure on the currency markets,” he told Bernama.
Meanwhile, the ringgit was traded weaker against major currencies.
It weakened against the Japanese yen to 2.9552/9584 from 2.9471/9495, declined against the British pound to 5.5806/5863 from 5.5704/5742, and fell against the euro to 4.6301/6348 from 4.6156/6188.
The local currency was mixed against ASEAN currencies.
It depreciated against the Singapore dollar to 3.2997/3034 from 3.2950/2975 and fell against the Philippine peso to 7.63/7.64 from 7.62/7.63.
However, it was higher against the Thai baht at 13.1132/1324 from 13.1508/1672 and rose against the Indonesian rupiah to 270.0/270.4 from 270.7/271.1. – February 25, 2025