Ringgit Declines As US Prepares 25 Pct Tariffs On Canada, Mexico

By Siti Noor Afera Abu

KUALA LUMPUR, Feb 27 (Bernama) -- The ringgit weakened further against the US dollar amid mixed market sentiments following the US government’s preparations to impose 25 per cent tariffs on Canada and Mexico in early March.

At 6 pm, the ringgit fell to 4.4410/4480 from 4.4260/4305 at Wednesday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid observed that the ringgit was generally weaker against the greenback, just shy of the immediate resistant level of RM4.45.

He also noted that Asian currencies were also weaker against the US dollar.

The decline in the US Treasury yields and the lacklustre performance in the global equities market suggest that risk-off mode may have prevailed. The 10-year US Treasury yield has declined by 33 basis points to 4.25 per cent.

“Such market conditions would typically benefit the US dollar as traders and investors were seeking refuge against market volatility, along with the ongoing net foreign fund outflows in Malaysian equities indicate that foreign investors’ risk appetite has gone down and becomes defensive.

“As such, the ringgit is currently flirting towards its immediate resistant level of RM4.45 owing to risk aversion sentiments in the financial market,” he told Bernama.

Meanwhile, the ringgit was traded weaker against major currencies.  

It was slightly weaker against the Japanese yen to 2.9634/9683 from 2.9631/9663, declined against the British pound to 5.6303/6392 from 5.5993/6050, and fell against the euro to 4.6559/6633 from 4.6455/6503.

The local currency was traded mixed against ASEAN currencies.  

It depreciated against the Singapore dollar to 3.3122/3177 from 3.3079/3115 and fell against the Philippine peso to 7.67/7.69 from 7.64/7.66.

It, however, rose against the Thai baht to 13.0964/1240 from 13.1281/1469 and appreciated against the Indonesian rupiah to 269.8/270.4 from 270.2/270.5.

-- BERNAMA