Ringgit Gains on Majors, Slips vs US Dollar on Tariff Fears

KUALA LUMPUR, July 24 - The ringgit opened higher against most major currencies on Friday but weakened against the US dollar, as markets turned risk-averse following a fresh round of American import tariffs and climbing crude oil prices.

At 8.01am, the local currency was quoted at RM4.0925/4.0980 against the greenback, compared with RM4.0870/4.0910 at Thursday's close. The softer opening came after US President Donald Trump announced additional import tariffs of between 10% and 12.5% on 60 economies, including Malaysia, citing concerns over forced labour practices.

US Dollar Pressure and Tariff Shock

Bank Muamalat Malaysia chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiment was affected after the tariff announcement. The latest tariff escalation arrived as investors were already monitoring rising crude oil prices, which have added pressure to inflation concerns and reinforced a more cautious risk environment globally.

Performance Against Major Currencies

Despite the slip against the US dollar, the ringgit posted gains across a basket of major currencies at the opening bell. It strengthened against the Japanese yen to 2.4971/2.5006 from 2.5015/2.5041 at Thursday's close, and appreciated against the euro to 4.6556/4.6619 from 4.6641/4.6686.

The local note also rose against the British pound, opening at 5.4483/5.4557 compared with 5.4647/5.4701 previously.

Mixed Showing in ASEAN

Against regional currencies, the ringgit delivered a mixed performance. It edged higher against the Singapore dollar to 3.1651/3.1696 from 3.1667/3.1701 at Thursday's close, but weakened against the Indonesian rupiah to 228.1/228.5 from 227.8/228.1.

The local currency also fell against the Thai baht, opening at 12.0937/12.1153 compared with 12.0860/12.1021 previously, while remaining flat against the Philippine peso at 6.62/6.64 from 6.62/6.63.

Outlook and Market Sentiment

Dr Mohd Afzanizam expects the ringgit to trade cautiously against the US dollar throughout the day, with the local currency likely to move within the RM4.08 to RM4.10 range. The combination of trade protectionist policies from Washington and elevated crude oil prices is expected to keep risk appetite subdued in the near term.