KUALA LUMPUR — The ringgit jumped to its highest level in almost three months against the US dollar at closing today after US President Donald Trump adopted a softer tone on China tariffs and signalled that he wanted lower interest rates.
At 6 pm, the ringgit surged to 4.3750/3800 against the greenback, compared to Thursday’s close of 4.4420/4465.
Previously on Nov 5, 2024, the ringgit hit a high of 4.3415/3505 against the greenback.
Global shares and major Asian currencies rose on Friday, buoyed by the prospect of a softer stance on tariffs on China and lower US interest rates following comments from the American president.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest comments made by Trump on tariffs on China could be constructive for emerging markets and currencies, including Malaysia.
“There were concerns over tariff impositions towards China and now it seems that Trump’s approach has been milder and pragmatic, which can promote a more conducive international trade environment.
“With the latest announcements, the ringgit could be one of the key beneficiaries. Malaysia is obviously a trading nation, so given this development, it can be good for our growth and should translate into better prospects for the ringgit going forward,” he told Bernama.
Regarding Trump’s signal for lower interest rates, he said the US Federal Reserve (Fed) and the White House shouldn’t have too much friction over it because they are focused on the same goal.
“The Fed has already eased its monetary policies and Trump is looking for a more dovish stance on monetary policy. So, it seems that there won’t be much friction, which should be positive for US monetary policy – this suggests that lower rates are likely,” he added.
At the close, the ringgit traded higher against other major currencies.
It went up against the Japanese yen to 2.8115/8149 from Thursday’s 2.8429/8461, appreciated against the euro to 4.5911/5964 from 4.6246/6293, and strengthened against the British pound to 5.4373/4435 from 5.4703/4759.
The local note also traded higher against ASEAN currencies.
It improved against the Indonesian rupiah to 270.5/270.9 from 272.7/273.1, advanced against the Philippine peso to 7.50/7.51 from 7.57/7.58 and edged up against the Thai baht to 13.0015/0241 from 13.0582/0779.
It gained against the Singapore dollar to 3.2482/2522 from 3.2734/2770. – January 24, 2025