Kuala lumpur: The ringgit closed higher against the US dollar on Monday, maintaining its position at the 3.88 level since the market opened, following the US Supreme Court's decision to strike down a significant portion of President Donald Trump's tariff policy last Friday.
According to BERNAMA News Agency, the ringgit strengthened to 3.8885/8925 against the greenback at 6 pm, compared to last Friday's close of 3.8995/9055. During the session, the ringgit reached an eight-year high at the opening, rising to 3.8835/9065-a level last seen on February 2, 2018.
Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that the ringgit continued its robust performance following the recent developments in the US tariff policy. He stated, "It's a sigh of relief to the global economy, although the Trump administration has maintained its protectionist posture."
The USD/MYR is currently hovering around its technical support level at RM3.8722 after breaking past the psychological level of RM3.9000. On February 20, the US Supreme Court invalidated President Trump's tariffs based on the International Emergency Economic Powers Act (IEEPA), including his reciprocal tariffs.
Subsequently, Trump announced plans to increase the global tariff to 15 percent from 10 percent on Saturday, in response to the court ruling that nullified most of his prior trade measures.
At the close, the ringgit traded lower against a basket of major currencies. It declined against the Japanese yen to 2.5120/5147 from 2.5092/5132 at last Friday's close, weakened against the euro to 4.5888/5935 from 4.5882/5952, and edged down vis-a-vis the British pound to 5.2526/2580 from 5.2511/2591 previously.
The local currency also traded lower against its ASEAN counterparts. The ringgit fell marginally against the Singapore dollar to 3.0727/0761 from 3.0724/0774 at last Friday's close, dipped against the Thai baht to 12.5342/5532 from 12.4952/5216, retreated against the Indonesian rupiah to 231.4/231.7 from 230.8/231.3, and declined against the Philippine peso to 6.75/6.76 from 6.70/6.72 previously.