HEADLINES

Ringgit strengthens amid US tariff move on EU, Mexico, Canada

Analyst says local note expected to remain within narrow range of RM4.24 to RM4.25 amid ongoing global uncertainties

9:43 AM MYT

 

KUALA LUMPUR – The ringgit opened higher against the US dollar today, lifted by concerns over Washington’s plan to impose tariffs on three major trading partners from August 1, 2025.

Over the weekend, United States President Donald Trump announced plans to impose a 30% tariff on goods from the European Union and Mexico, and a 35% tariff on Canadian products.

At 8am, the ringgit strengthened to 4.2405/2635 against the greenback, compared with Friday’s close of 4.2475/2525.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US had weaponised tariffs to gain economic advantage.

“Clearly, the tariff policy instrument has been weaponised by the US to address economic imbalances.

“This means downside risks to global growth remain elevated, while the risk of higher inflation especially in the US, is becoming more apparent, complicating the Federal Reserve’s decision-making on rate cuts,” he told Bernama.

Afzanizam added that the ringgit is expected to remain within a narrow range of RM4.24 to RM4.25 amid ongoing global uncertainties.

At the open, the ringgit was higher against a basket of major currencies.

It advanced against the Japanese yen to 2.8792/8950 from 2.8893/8929, strengthened against the British pound to 5.7234/7544 from 5.7524/7592, and gained versus the euro to 4.9546/9815 from 4.9679/9737 previously.

The local note was also firmer against most Asean currencies, except the Thai baht.

It rose vis-a-vis the Singapore dollar to 3.3119/3303 from 3.3186/3228, edged up against the Indonesian rupiah to 261.4/263.0 from 261.8/262.3, and appreciated versus the Philippine peso to 7.51/7.55 from 7.52/7.53.

However, it slipped against the Thai baht to 13.0916/1711 from 13.0668/0886 at Friday’s close. – July 14, 2025

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