KUALA LUMPUR, Feb 23 — The ringgit touched an eight-year high against the US dollar at today’s opening, supported by strong domestic economic data and a softer US growth outlook, as markets digested renewed uncertainty surrounding Washington’s tariff policies, said an economist.
At 8 am, the ringgit rose to 3.8835/9065 against the greenback from 3.8995/9055 at Friday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid opined that 2025’s fourth quarter gross domestic product data came in slower at 1.4 per cent, while the inflation rate stayed above the two per cent target, along with weaker consumer and business sentiment.
Meanwhile, the US import tariff is back on traders’ radar following the Supreme Court decision that US President Donald Trump does not have the constitutional authority to impose sweeping global tariffs under the International Emergency Economic Powers Act (IEEPA).
“President Trump remains adamant about imposing tariffs using different laws; at the same time, some trading partners have indicated they will halt the ratification process of trade deals with the US.
“In some sense, the separation of powers still exists in the US; that should provide some comfort that there is a check-and-balance mechanism to ensure fair and equitable economic conditions,” he told Bernama.
On Saturday, Trump said he would raise the global tariff to 15 per cent from 10 per cent, following the court ruling that struck down most of his earlier trade measures.
At opening, the ringgit traded lower against a basket of major currencies.
It depreciated versus the Japanese yen to 2.5162/5314 from 2.5092/5132 at Friday’s close, edged down vis-a-vis the British pound to 5.2540/2851 from 5.2511/2591 and was lower against the euro at 4.5946/6218 from 4.5882/5952 previously.
The local note traded mostly higher against its ASEAN peers.
The ringgit improved versus the Singapore dollar to 3.0712/0899 from 3.0724/0774 on Friday, advanced against the Indonesian rupiah to 229.9/231.4 from 230.8/231.3, and was firmer against the Philippine peso at 6.68/6.72 from 6.70/6.72. It fell against the Thai baht to 12.5201/6024 from 12.4952/5216 previously. — Bernama
