KUALA LUMPUR: The ringgit closed slightly lower against the US dollar today, as “knock-on effect” hit the local currency due to US President Donald Trump's remarks on planned tariffs on aluminium and steel last week.
A dealer said further development in the proposal to impose tariffs on imported steel and aluminium would potentially spark trade war between the US, China and Europe.
"Investors viewed that this hampered Malaysia's currency as China an Europe are taking the same measure, hence affecting the country's export position,” he said, adding that Trump’s move could also lead to a decline in oil prices.
At 6 pm, the local note was quoted at 3.9050/9080 versus the greenback from Friday's 3.9020/9050.
The local note was also traded lower against a basket of major currencies.
It depreciated against the Singapore dollar to 2.9588/9617 from 2.9532/9565 on Friday, for British pound, the ringgit declined to 5.3944/3001 from 5.3742/3795.It decreased against the euro to 4.8110/8162 from 4.7901/7946 and weakened against the yen to 3.6983/6022 from 3.6888/6934.