Ringgit Faces Uncertainty, Expected to Trade Cautiously Amid US Tariff Concerns

KUALA LUMPUR — The ringgit is projected to trade cautiously next week, fluctuating between RM4.41 and RM4.44 against the US dollar, amid rising concerns over US tariff policies.

Stephen Innes, managing partner at SPI Asset Management, warned that the ringgit could come under pressure due to Malaysia’s strong trade ties with China, which is impacted by the latest US tariff moves. If the US enforces these tariffs, the ringgit may weaken further.

However, if US President Donald Trump softens his stance, the currency could see some relief. Innes noted that foreign exchange markets typically hedge against worst-case scenarios, with local exporters possibly holding off on selling dollar holdings.

The ringgit weakened to 4.4550/4600 against the US dollar on Friday, down from 4.3750/3800 a week earlier, and also depreciated against several major and ASEAN currencies, including the British pound, Japanese yen, euro, Thai baht, Singapore dollar, Indonesian rupiah, and Philippine peso.