Ringgit Opens Higher Against US Dollar Amid Tariff Policy Concerns
By Engku Shariful Azni Engku Ab Latif
KUALA LUMPUR, June 3 (Bernama) -- The ringgit rebounded to open higher against the US dollar on Tuesday, as markets assessed the outlook for US President Donald Trump's tariff policy, an analyst said.
At 8.03 am, the local note rose to 4.2165/2490 against the greenback from Friday’s close of 4.2530/2605.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the ringgit was supported by a weaker dollar, driven by renewed US-China trade tensions and concerns over possible new tariffs and taxes from Washington.
He said the US Dollar Index (DXY) fell 0.11 per cent to 98.60 points from 99.00 at Friday’s close, supporting other currencies as well.
“The comments from Beijing and Washington signal frustration over unmet trade commitments.
“Meanwhile, uncertainty surrounding Trump’s proposed Section 899 ‘revenge tax’ in the House-passed reconciliation bill and dovish expectations for the US Federal Reserve continue to weigh on the greenback,” he told Bernama.
At the opening, the ringgit traded mixed against a basket of major currencies and ASEAN peers.
It appreciated against the British pound to 5.7134/7574 from Friday’s close of 5.7284/7385, but weakened versus the Japanese yen to 2.9567/9799 from 2.9531/9585, and slipped against the euro to 4.8270/8643 from 4.8169/8254.
Against ASEAN currencies, the ringgit inched up against the Philippine peso to 7.57/7.63 from 7.62/7.64, but slipped versus the Singapore dollar to 3.2808/3066 from Friday’s close of 3.2938/3002 and eased against the Indonesian rupiah to 259.4/261.5 from 260.4/261.1.
-- BERNAMA