KUALA LUMPUR: The ringgit closed lower against the greenback today after United States (US) President-elect Donald Trump vowed to impose new tariffs on imports from Mexico and Canada.
At 6 pm, the local currency depreciated to 4.4560/4600 against the US dollar from Monday’s close of 4.4495/4570.
SPI Asset Management managing director Stephen Innes said the ringgit weakened after Trump announced his plan to impose new tariffs on imports from Mexico and Canada in the Truth Social platform on Nov 25.
The post said: "On January 20th, as one of my many first executive orders, I will sign all necessary documents to charge Mexico and Canada a 25 per cent tariff on all products coming into the US.”
Innes said that this escalation of his "America First” policy raised concerns among Malaysian investors, triggering a flight to the US dollar as a hedge against the potential strain on regional trade dynamics.
"Today’s market turbulence might mark the beginning of a potentially fluctuating period, shaped by Trump’s assertive social media statements.
"Investors may benefit from staying attentive and adopting a measured approach in the coming weeks,” he added.
The ringgit also traded lower against a basket of major currencies.
It dropped versus the British pound to 5.6021/6071 from 5.5939/6033 at Monday’s close, fell against the euro to 4.6824/6866 from 4.6662/6741 yesterday, and weakened vis-a-vis the Japanese yen to 2.8952/8980 from 2.8811/8861.
The local unit traded mostly lower against ASEAN currencies.
It slipped against the Singapore dollar to 3.3066/3098 from 3.3028/3088 at the close yesterday, eased versus the Thai baht to 12.8393/8564 from 12.8390/8670 and slid vis-a-vis the Philippine peso to 7.55/7.56 from 7.54/7.56.
However, it ticked up against the Indonesian rupiah to 279.6/280.0 from 280.1/280.7 previously. - Bernama
