The ringgit opened lower against the US dollar today as investors remained on the sidelines owing to global economy uncertainty and increased trade tension involving the United States.
At 9 am, at the closing of Friday, the ringgit was at 4.1750/1780 against the greenback at 4.1650/1690.
In its financial brief, MIDF Research said the heightened trade tension between the US and China has weakened the feeling of US customers with long-term inflation expectations falling to the smallest recorded level as the outlook for the economy dimmed in the wake of President Donald Trump’s heightened trade conflict.
The trade war also led China’s industrial production development in May to be five percent year-on-year at the lowest rate since the start of 2002.
Meanwhile, according to Bernama, a merchant said the US-China trade tension was not the only reason why investors were cautious, but the increase in tariffs involving a trade conflict between India and the US also caused extra harm to the global economy.
India allegedly announced yesterday a retaliatory tariff on U.S. goods like apples, which will be struck with a tariff of 70%, as well as almonds, lentils and several chemical items.
Meanwhile, the ringgit traded on a basket of significant currencies mostly higher.
It valued against the Singapore dollar at 3.0448/0481 from 3.0457/0491 from the close of Friday, greater against the pound at 5.2572/2618 from 5.2691/2759 and improved from 4.6940/6989 compared to the euro at 4.6835/6873.
The local currency also inched up against the yen at 3.8430/8461 from 3.8490/8534.