The ringgit opened higher against the US dollar today as investors remained cautious after Washington announced a 90-day suspension of reciprocal tariffs for all countries except China.
At 10.40am, the ringgit was at 4.4400, up 0.58% against the US dollar compared to its closing of 4.4670 at the end of Thursday.
Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid said after the 90-day pause, financial markets were in turmoil with US equities falling sharply, US 10-year Treasury yields higher while the US Dollar Index (DXY) declined sharply.
For now, traders and investors will reassess how the tariffs will affect the economy with growth and inflation still under pressure.
Inflation risks are rising as the trade war heats up, making it harder for the US Fed to carry out its mission to stabilise prices.
Accordingly, the ringgit is expected to remain in a tight range, taking cues from the decline in the DXY and increasing market uncertainty over tariffs.
The ringgit was mostly lower against major currencies.
It weakened against the Japanese yen to 3.0879/0988 from 3.0594/0639, depreciated against the euro to 4.9854/0023 from 4.9401/9467, but rose against the British pound to 5.7540/7735 from 5.7566/7644 yesterday.
Meanwhile, local currencies were mostly stronger against Asean currencies.
It rose against the Singapore dollar to 3.3330/3450 from 3.3361/3411, rose against the Philippine peso to 7.72/7.75 from 7.79/7.81 and was higher against the Indonesian rupiah to 263.1/264.1 from 265.5/265.9 yesterday. However, the ringgit was lower against the Thai baht to 13.0910/1439 from 13.0618/0866
