Ringgit strengthens on low tariff impact expectations

The ringgit opened higher today amid expectations that Malaysia will be less affected by upcoming US tariffs set to take effect on April 2. Analysts believe Malaysia has one of the lowest tariff rates compared to other countries. At 8 am, the ringgit was valued at 4.4155/4230 against the US dollar, rising from the previous closing rate of 4.4180/4220. Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted this trend as traders prepare for the implications of these tariffs. Market participants are carefully watching how the tariffs will impact economies globally. There are concerns that these tariffs could slow economic growth, prompting central banks to respond with policies to support growth. This uncertainty could drive investors towards safer assets, like the US dollar. Data from the World Trade Organization shows that several countries, including India and South Korea, have significantly higher average tariff rates than Malaysia. This suggests that Malaysia could be less impacted by the tariffs. The ringgit showed strong performance against other major currencies as well. It appreciated against the British pound and the Japanese yen, while remaining stable against the euro. The local currency also strengthened against various ASEAN currencies, including the Singapore dollar and the Thai baht.