KUALA LUMPUR: The ringgit rebounded to end higher as the US dollar fluctuated yesterday amid rising trade tensions after the United States government issued new tariff threats on the global market, an analyst says.
At 6pm, the local note rose to 4.2410/2505 against the greenback from Wednesday’s close of 4.2500/2540.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index fell 0.12% as Donald Trump announced that he will impose an import tariff of 50% for copper effective Aug 1.
“Such disruptive policies are set to raise the cost of doing business in the United States and ultimately would undermine the long-term growth trajectory, as prolonged uncertainties could take a serious toll on business,” he told Bernama.
In the meantime, investors will shift their focus on the release of initial US jobless claims data as it stands out as a crucial economic indicator that could sway market dynamics.