KUALA LUMPUR, May 8 — The ringgit closed unchanged against the US dollar today amid the plan by the United States to increase tariffs on China’s exports worth of US$200 billion on Friday, dealers said.
At 6pm, the ringgit was unchanged at 4.1470/1500 from Tuesday’s close.
News reports indicate that most emerging currencies weakened on renewed concerns over the US-China trade war and global growth.
SPI Asset Management managing partner Stephen Innes said traders are turning to the possible damaging effect that higher US tariffs could have on the local export market.
“Keep in mind that Malaysia’s exports declined 0.5 per cent in March from a year earlier. We think that on an escalation of a trade war, the ringgit will get massively influenced, given its high levels of exports concentrated into China,” he added.
The higher tariffs are scheduled to take effect on Friday, when Chinese Vice Premier Liu He would be in Washington for a last-ditch bid for a deal on Thursday.
Meanwhile, Phillip Capital Management senior vice president (Investment) Datuk Dr Nazri Khan Adam Khan said the decline in oil prices would put more pressure on the ringgit’s performance in the near-term.
He also commented that the cut in the overnight policy rate (OPR) by Bank Negara Malaysia (BNM) to 3.0 per cent from 3.25 per cent (25 basis point slash) yesterday, would soon see eminent results.
“This is in line with the revival of the East Coast Rail Link (ECRL) and Bandar Malaysia projects that will boost corporate financing,” he told Bernama.
The ringgit also traded mostly lower against other major currencies.
It slightly eased against the Singapore dollar to 3.0452/0479 from 3.0446/0472 on Tuesday and fell against the yen to 3.7700/7738 from 3.7506/7540.
The local unit, however, improved versus the British pound to 5.4027/4075 from 5.4288/4340, but was unchanged against the euro at 4.6455/6501 from 4.6455/6505. — Bernama
