Ringgit Strengthens as US-China Trade Tensions Weigh on the Dollar

Kuala Lumpur, April 14, 2025 — Malaysia’s ringgit has opened higher against the US dollar today, rising against a backdrop of diminishing confidence in the greenback as US-China trade disputes escalate. At 8 am, the ringgit appreciated by 1.06 percent, trading at 4.4185/4270 against the dollar, compared to 4.4200/4265 at the previous week’s close.

US Dollar Weakness

The decline in the US dollar can be attributed to increased uncertainties stemming from ongoing trade tensions. Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that the US Dollar Index (DXY) had dipped below 100 points, which was surprising given the heightened risk aversion that often accompanies trade conflicts.

Over the weekend, US President Donald Trump announced a temporary reprieve on tariffs for smartphones and computers, a move that seemed to create some optimism. However, market sentiment remains cautious as evidenced by the University of Michigan Consumer Sentiment Index, which fell to 50.8 points in April, indicating that consumers are likely to be wary about their spending.

Dr. Afzanizam expressed that despite the recovery of the ringgit, traders should expect the dollar-ringgit pair to remain within a narrow trading range, albeit with a slight positive bias due to the considerable drop in the DXY.

Ringgit’s Performance Against Other Currencies

In addition to strengthening against the US dollar, the ringgit also gained against several major currencies this morning. It appreciated against the Japanese yen, rising to 3.0761/0822 from 3.0952/1000, and improved against the euro, moving to 5.0123/0220 from 5.0207/0281. The local currency also edged up against the British pound, climbing to 5.7820/7932 from 5.7849/7934. Despite these gains, the ringgit displayed a mixed performance against several ASEAN currencies. It saw a slight increase against the Singapore dollar, rising to 3.3491/3566 from 3.3495/3549, but weakened against the Thai baht, which changed to 13.1778/2141 from 13.1599/1902. The ringgit remained steady against the Indonesian rupiah at 263.0/263.7 and the Philippine peso at 7.75/7.77. ### Conclusion

As the geopolitical and economic landscape continues to evolve, the strength of the ringgit amidst the weaker dollar amidst US-China trade tensions highlights the complexities of the current global trade situation. Observers will be monitoring not only further developments in the trade arena but also consumer sentiment and economic indicators from the United States that could influence currency markets in the near future.