Ringgit Weakens Against US Dollar As Trade War Escalates

By Siti Noor Afera Abu

KUALA LUMPUR, Feb 28 (Bernama) -- The ringgit closed lower against the US dollar on Friday as concerns over an escalating trade war weighed on sentiment.

US President Donald Trump said on Thursday that his proposed 25% tariffs on Mexican and Canadian goods will take effect next Tuesday, along with an extra 10% duty on Chinese imports. 

At 6 pm, the ringgit fell to 4.4600/4650 from 4.4410/4480 at Thursday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the local currency breached its immediate support level of RM4.45 today. “In addition (to worries over the trade war), US Federal Reserve officials appeared inclined to maintain interest rates,” he told Bernama.

The ringgit was traded mostly higher against major currencies.

It improved against the British pound to 5.6174/6237 from 5.6303/6392 and rose against the euro to 4.6362/6414 from 4.6559/6633 but was slightly weaker against the Japanese yen at 2.9682/9717 from 2.9634/9683.

The local currency traded mostly stronger against ASEAN currencies, except for the Philippine peso, where it weakened to 7.69/7.70 from 7.67/7.69.

It appreciated against the Singapore dollar to 3.3069/3108 from 3.3122/3177, rose against the Thai baht to 13.0455/0670 from 13.0964/1240 and gained against the Indonesian rupiah to 268.7/269.1 from 269.8/270.4.

-- BERNAMA