Kuala Lumpur: The ringgit closed lower against the US dollar on Friday amid heightened interest in the greenback, driven by anticipation of a potential trade agreement between the United States and China by the end of the week. At 6 pm, the local currency weakened to 4.2970/3005 against the greenback, compared to Thursday's closing rate of 4.2780/2830.

According to BERNAMA News Agency, Dr. Mohd Afzanizam Abdul Rashid, the chief economist at Bank Muamalat Malaysia Bhd, observed that the US Dollar Index (DXY) had strengthened in recent sessions, maintaining levels around 100 points. He highlighted that China's trade data for April indicated a 21 percent decline in exports to the US, while export growth to ASEAN and the European Union rose by 22.5 percent and 8.3 percent, respectively. Dr. Mohd Afzanizam suggested that this trend might persist if tariff issues remain unresolved.

At the close of trading, the ringgit also registered declines against a basket of major currencies. It slipped against the Japanese yen to 2.9565/9591 from 2.9534/9571 at Thursday's close, weakened against the euro to 4.8320/8359 from 4.8264/8321, and fell against the British pound to 5.7004/7050 from 5.6769/6835.

The local currency showed a similar downward trend against its ASEAN counterparts. It depreciated against the Singapore dollar to 3.3095/3124 from 3.2984/3025 at Thursday's close, declined against the Indonesian rupiah to 260.0/260.4 from 259.2/259.6, and edged lower against the Philippine peso to 7.74/7.76 from 7.69/7.70. However, the ringgit appreciated against the Thai baht, moving up to 13.0082/0267 from 13.0189/0404 previously.