How will US-China trade deal uncertainty affect the ringgit?

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US-China Trade Deal Uncertainty Weighs on Ringgit's Performance

The ringgit opened marginally lower against the US dollar due to a lack of buying interest, primarily influenced by ongoing uncertainties surrounding the US-China trade deal negotiations. At 9:06 am, the local currency was trading at 4.1260/1300 against the US dollar, a slight depreciation from its previous close of 4.1225/1255. This performance reflects market apprehension regarding the potential outcomes of these high-stakes discussions.
Market Awaits Clarity on Tariff Stance

A key factor contributing to the ringgit's subdued performance is the market's uncertainty about whether US President Donald Trump will agree to a phased suspension of existing tariffs on Chinese goods. This ambiguity creates a cautious sentiment among investors, impacting the demand for the ringgit as traders await concrete developments or clear indications of a de-escalation in trade tensions.
Ringgit Expected to Hover Around 4.12 Level

Market analysts suggest that the ringgit is likely to continue testing the 4.12 level against the US dollar if no significant "risk-off" events occur or if there isn't a material negative shift in the US-China trade talks. This indicates that the currency's immediate trajectory remains closely tied to the evolving narrative of the trade negotiations, with stability contingent on the absence of adverse developments.
Ringgit Strengthens Against Other Major Currencies

Despite the slight weakness against the US dollar, the ringgit demonstrated gains against several other major currencies. It traded higher against the Singapore dollar, moving to 3.0365/0415 from 3.0382/0408. The local unit also appreciated against the Japanese yen, reaching 3.7753/7800 from 3.7797/7828, and showed strength against the British pound, trading at 5.2862/2926 compared to 5.3036/3095. Furthermore, the ringgit saw an increase against the euro, quoted at 4.5576/5637 from 4.5661/5706.

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How will US-China trade deal uncertainty affect the ringgit?

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