By Durratul Ain Ahmad Fuad

KUALA LUMPUR, March 24 (Bernama) -- The ringgit ended lower against the US dollar as concerns over reciprocal tariff rates, which are expected to take effect on April 2, prompted traders and investors to adopt a more cautious stance.

The local note dipped against the US dollar to 4.4325/4370 from last Friday’s close of 4.4180/4220.

 Bank Muamalat  Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, citing Bank Negara Malaysia’s (BNM) Annual Report 2024 released today, said that the main macroeconomic targets for 2025 remain unchanged.

He projects that the gross domestic product (GDP) stays at 4.5 per cent to 5.5 per cent and the inflation rate at 2.0 per cent to 3.5 per cent.

“This suggests that economic assessment has not deviated materially despite the challenging outlook due to tariff measures by the United States (US) new administration,” the economist told Bernama. 

Mohd Afzanizam also said that the overnight policy rate could stay at 3.00 per cent and the interest rate differential with the US rate should narrow further.

“The US Federal Reserve (Fed) is expected to reduce the Fed Fund Rate twice this year based on the latest projection by the Fed staff.

“Hence, it should provide support to the ringgit, perhaps in the second half of the year, as we get more clarity on US policies,” he added. 

Meanwhile, the ringgit was traded lower against a basket of major currencies.   

It depreciated against the euro to 4.8039/8088 from 4.7843/7886 at last Friday’s close, appreciated against the British pound to 5.7441/7499 from 5.7151/7203 and eased against the Japanese yen to 2.9631/9663 from 2.9574/9602.  

The local note was mostly lower against ASEAN currencies. 

It edged down against the Singapore dollar to 3.3148/3184 from 3.3081/3114 at the previous close, narrowed against the Philippine peso to 7.73/7.74 from 7.70/7.71, and weakened against the Thai baht to 13.0849/1043 from 13.0436/0608.

The ringgit appreciated against the Indonesian rupiah to 267.5/267.9 from 267.7/268.0 at last Friday’s close.

-- BERNAMA