Ringgit opens lower on cautious sentiment after US tariff policy update
At 8 am, the local note depreciated to 4.2345/2430 versus the greenback from Monday's close of 4.2310/2400.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) rose by 0.31 per cent to 97.480 points following the US government's announcement that the pause period for the reciprocal tariff would expire soon.
The tariff rate for Malaysia has been revised up slightly to 25 per cent from 24 per cent prior to the pause.
Mohd Afzanizam noted that under the latest round of tariffs announced, some countries -- such as Laos, Myanmar, Cambodia, Bangladesh and Bosnia -- are seeing a reduction in tariff rates compared with the figures given in April, while others will have unchanged or slightly higher rates.
"As for Malaysia, the tariff rate has been revised upward to 25 per cent from 24 per cent previously. We believe this will influence market sentiment today, likely leading to a risk-off mode,' he told Bernama.
In this regard, Mohd Afzanizam said, the ringgit could trade on a cautious note, possibly around RM4.23 to RM4.25 today.
At market open, the ringgit traded mostly lower against a basket of major currencies.
The local currency appreciated versus the Japanese yen to 2.9029/9092 from 2.9091/9155 at Monday's close.
However, it eased against the British pound to 5.7691/7807 from 5.7563/7685 yesterday and declined vis-à-vis the euro to 4.9700/9800 from 4.9647/9752 previously.
Meanwhile, the ringgit traded lower against its ASEAN counterparts with the exception of the Thai baht.
It rose versus the Thai baht to 12.9745/13.0082 from 12.9837/13.0173 at yesterday's close.
However, the ringgit slipped vis-à-vis the Singapore dollar to 3.3110/3180 from 3.3096/3172 on Monday, weakened against the Indonesian rupiah to 260.7/261.3 from 260.5/261.2 previously, and edged down versus the Philippine peso to 7.47/7.49 from 7.46/7.48. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
14 minutes ago
- New Straits Times
Asia number one target of Trump's tariff letters
TOKYO: Donald Trump sent letters to 14 countries, mainly in Asia, informing them that higher import tariffs will come into effect on August 1 unless they reach a deal with the United States. It is the second time the US president has set a deadline after he postponed tariffs on almost all countries in April for 90 days. Countries that have large trade imbalances with the United States have been key targets, including Japan (US$68.5 billion surplus in 2024), South Korea (US$66 billion), Thailand (US$45.6 billion) and Indonesia (US$17.9 billion). Here is a summary of what Trump's letters mean for these countries: South Korea, already burdened by sector-specific levies on steel and automobiles, is facing a 25 per cent tariff hike on its remaining exports to the United States, but is cautiously optimistic of brokering a deal. Washington "expressed agreement" and "hoped the two sides could reach an agreement before then (August 1) through close communication", South Korea's national security adviser Wi Sung-lac said after meeting US Secretary of State Marco Rubio on Monday. South Korea, one of the world's biggest shipbuilders, agreed to "coordinate closely" with Washington on the industry to achieve "tangible and mutually beneficial outcomes", he said. A close US ally and the largest source of foreign investment in the country, Japan also has to deal with a 25 per cent levy on its key auto industry. It is now facing similar tolls on other goods, up from 24 per cent announced in April, but better than the "30 per cent, 35 per cent or whatever the number is that we determine" threatened by the president last week. Japan's Prime Minister Shigeru Ishiba said at a cabinet meeting Monday that the tariff set out in the letter was "genuinely regrettable", according to local media reports. The reason for not making a deal, he said, was "the Japanese government has avoided making easy compromises, firmly demanding what should be demanded, protecting what should be protected, and has conducted rigorous negotiations." Trump has criticised Japan for not opening its market to American rice and vehicles enough. Rice imports is a taboo topic for the Japanese government, which claims to defend local farmers' interests and has taken a hardline approach to talks ahead of an upper house parliamentary election on July 20. Jakarta, facing 32 per cent tariffs, plans to increase its agricultural and energy imports from the United States to finalise an agreement, Economy Minister Airlangga Hartarto recently told AFP. Indonesia had already announced Monday it had signed an agreement to import at least one million tons of American wheat annually for the next five years, worth US$1.25 billion. Trump announced 49 percent tariffs on Cambodia in April, representing one of the highest in his blitz. Monday's letter to the country that hosts many Chinese owned factories, reduces this rate to 36 per cent. Prime Minister Hun Manet assured the White House of Phnom Penh's "good faith" in negotiating, with reduced tariffs on 19 categories of American products. Myanmar and Laos, which both face 40 per cent tolls, rely heavily on Chinese investments, while their supply chains are closely intertwined with Asia's largest economy. Washington has repeatedly highlighted the risk of Chinese products passing through other Southeast Asian countries to avoid US tariffs targeting China, a concern mentioned in Trump's letters. Thailand was told it faces 36 per cent levies in its letter. Bangkok is offering more access to its market for American agricultural and industrial products, increasing its energy purchases, and boosting orders for Boeing airplanes. Acting prime minister Phumtham Wechayachai told reporters Tuesday he wanted a "better deal", adding that "the most important thing is that we maintain good relations with the US." Bangkok's latest proposal aims to grow bilateral trade volumes and reduce its US trade surplus by 70 per cent within five years, achieving balance in seven to eight years, Finance Minister Pichai Chunhavajira recently told Bloomberg News. Thai Airways could commit to purchasing up to 80 Boeing planes in the coming years, according to Bloomberg. Malaysia faces a 25 per cent tariff and the trade ministry said Tuesday it will continue negotiations to reach a "a balanced, mutually beneficial, and comprehensive trade agreement." The world's second-largest textile manufacturer is looking at a 35 per cent tariff on its goods but was hoping to sign an agreement by early July. Textile and garment production accounts for about 80 per cent of the country's exports, and US firms that source products from there include Fruit of the Loom, Levi Strauss and VF Corp – whose brands include Vans, Timberland and The North Face. Dhaka has proposed to buy Boeing planes and boost imports of US wheat, cotton and oil. "We have finalised the terms," Commerce Ministry Secretary Mahbubur Rahman told AFP, adding that negotiators were set to meet Tuesday to finalise their work. Kazakhstan (25 per cent), South Africa (30 per cent), Tunisia (25 per cent), Serbia (35 per cent), and Bosnia (30 per cent) are among the other recipients of the letters made public by Trump on Monday.
The Star
25 minutes ago
- The Star
Japanese outlet Nikaku serves a pork-free, alcohol-free omakase menu for all
Perched in a quiet nook in Lot 10's Isetan department store in Kuala Lumpur is Nikaku. The restaurant is a tiny little oasis of calm, bookmarked by an open kitchen bordered by a long counter dotted with chairs. Interestingly, Nikaku is an offshoot of KL's famed Sushi Azabu, which itself is a sister restaurant of the original Michelin-starred Sushi Azabu in New York, United States. The creative force behind Nikaku is executive chef Masaki Arakawa, a charismatic, seasoned Japanese culinary maven who trained in kaiseki in Nagoya, and went to sushi school in Osaka. Arawaka also helms KL's Sushi Azabu although mostly from a managerial perspective now. Nikaku emerged because Arakawa had married a Malaysian woman and embraced Islam. After converting, he realised there was a dearth of Japanese omakase restaurants and sushi restaurants that were pork-free and alcohol-free. So he decided to create one. Arakawa is the talented chef behind Nikaku's inclusive omakase sushi menus. 'Most of the high-end Japanese omakase restaurants use alcohol, so it is very hard to find a restaurant that caters to everyone. So we decided to make Nikaku a sushi omakase space for all Malaysians to enjoy the food,' he says. The kitchen team consists entirely of Malaysian chefs trained at Sushi Azabu or under Arakawa's watchful eye. While the food is alcohol-free and pork-free, the restaurant itself is not halal certified as the beverage list includes alcoholic options. Arakawa says that initially, there was scepticism about the restaurant's core ethos as people couldn't fathom what he was trying to do. 'For the first few months, people didn't understand why we were doing this omakase menu without alcohol, because omakase without alcohol hasn't really been done before. But gradually they started to understand the concept,' he says. At Nikaku, all the staff are locals who are trained in the art of sushi-making. This is done by design so if new branches are opened, local chefs will be put in charge. — ABIRAMI DURAI/The Star Arakawa adds that having a menu like this means it is much easier for him to cater to larger corporate events without having to struggle to find recipes or adapt existing ones. At Nikaku, there are plenty of sushi omakase menus to whet the appetite, but if you have the time, look at indulging in the eatery's signature Malaya Mae Omakase (RM398 per person). There is a conscious effort to use as many local ingredients as possible on the menu, so you'll discover a wealth of ingredients that reflect Malaysian sea and soil. Highlights from the menu include the seasonal sip, or Japanese onion soup infused with soy milk. The soup is a nourishing, satiating winner that has hints of allium fused into its internal blueprint, giving it a divergent slant that ends up being wholly memorable. The teriyaki chicken features beautifully grilled chicken with a blistered, lightly charred outer core that segues to incredibly tender meat. — ABIRAMI DURAI/The Star The teriyaki chicken is part of the Arang Bakar course of the menu and features chicken slathered in a teriyaki sauce that incorporates the use of white corn from Cameron Highlands. The chicken is cooked over a Japanese Binchotan grill and retains a lovely blistered outer surface that melds into juicy, succulent meat inside. The smoked yellowtail with ponzu sauce is another revelatory affair that highlights the suppleness of the fish against a smoky backdrop that casts it in a mysterious glow. The smoked yellowtail sashimi is a silken temptress with a decadent mouthfeel. — Photos: ABIRAMI DURAI/The Star One of the most memorable offerings on the menu is definitely the locally-sourced green river prawn crusted with a miso mayonnaise. Here, the fleshy, voluptuous sweetness of the prawn is juxtaposed against the creamy, umami-laced richness of the mayonnaise in what proves to be one of the most successful marriages to emerge from a meal here. Sushi is one of the highlights of the omakase menu and there is a rich range of mostly Japanese fish and other aquatics to fill your belly. Arakawa says this was a decision that was made after every effort was expended to incorporate local seafood into sushi – an endeavour that failed miserably. The mackerel sushi features a slightly oily, supple slice of fish that also has a dab of spring onions and ginger for contrast. — ABIRAMI DURAI/The Star 'Normally when we age Japanese fish, it becomes more umami and the flavour becomes more intense. "But when we did it with the local fish, it became more fishy. And we tried with so many fish – like grouper and nyok nyok – but it just didn't work, so we shifted to Japanese ingredients,' he explains. From what's on the table, indulge in the Japanese aji (mackerel) sushi with spring onion and ginger. The sushi is light and delicate with fish that has attributes of the sea harbouring beneath its supple, slightly oleaginous flesh. The rice in this configuration is moulded to the fish and offers just enough starch to tie this all together beautifully. The salmon sushi features fat, voluptuously silken fish draped atop rice. Then there is the shima aji or amberjack sushi, which is drizzled with yuzu skin shavings for a touch of acidity. The amberjack is plump and has a silk-like quality that makes it almost dissolve in the mouth upon contact. Last but not least is the salmon sushi, which features salmon marinated in miso paste. The salmon here is fat and velvety to the touch and this unctuousness is countenanced by the rice and vinegar that lines its base and gives it a heartfelt culmination that peaks in complete and total euphoria. The chawanmushi is sensationally good. Next up is Nikaku's chawanmushi, which is honestly a thing of beauty. The steamed egg custard is cloudy, pillowy soft and this goodness is accentuated by the glossy ikura pearls layered atop, which add richness and umami to this comfort food. The chirashi bowl served next features marinated raw uni (sea urchin), salmon, tuna and scallops sliced into pieces and scattered over a bed of rice in what proves to be a hedonistic dive into delicious underwater territory. Sliced sea urchin, salmon, tuna and scallop will vie for your affections in this delicious bowl of chirashi. Ultimately, a meal at Nikaku takes diners on a journey of discovery through the wonders of Japanese sushi and omakase culture. It's also interesting that a meal here never makes you point out the omission of pork or alcohol on the menu, mostly because you won't even notice they're missing. The food speaks for itself – and that's saying a lot. Which is why Arakawa is so keen to expand Nikaku's footprint overseas. In fact, the determined chef has already set his sights on the Middle East. 'I did a lot of market research a few months ago and because we are focusing on the Muslim market, I see a lot of potential in places like Dubai, Qatar, Saudi Arabia and Bahrain. 'There are many sushi restaurants there but the quality is not like in Malaysia, so I want to elevate it. Hopefully I can find a good partner or investor to work with and open Nikaku in the Middle East,' says Arakawa, smiling. Open daily: 12pm to 3pm; 6pm to 11pm
New Straits Times
29 minutes ago
- New Straits Times
Japan will continue trade talks with US for mutually beneficial deal
TOKYO: Japanese Prime Minister Shigeru Ishiba said on Tuesday that he would continue negotiations with the US to seek a mutually beneficial trade deal, after President Donald Trump announced 25 per cent tariffs on goods from Japan starting August 1. Trump on Monday began notifying trade partners of steep US tariff hikes, but later indicated a willingness to delay implementation if countries made acceptable proposals. The move triggered a broad decline in the yen as expectations receded of a near-term interest rate hike. While Tokyo and Washington have yet to reach a deal, Ishiba noted that recent talks had helped Japan avoid even steeper tariffs of around 30 per cent to 35 per cent. "We have received a proposal from the United States to swiftly proceed with negotiations towards the newly set August 1 deadline, and that depending on Japan's response, the content of the letter could be revised," Ishiba said at a meeting with cabinet ministers to discuss Japan's strategy on tariffs. Japan will "actively seek the chance of an agreement that benefits both countries, while protecting Japan's national interest," he added. Uncertainty on tariffs sent the dollar to a two-week high of 146.44 yen on fading expectations of a hawkish quarterly report from the Bank of Japan on July 31, which would have laid the groundwork for a rate hike later this year. "If the new deadline is set on August 1, the BOJ probably won't be able to say much at the upcoming report in July," said Takeshi Ishida, a strategist at Kansai Mirai Bank. "Market expectations of a near-term rate hike will be rolled back." In a press conference on Tuesday, Finance Minister Katsunobu Kato said he had no plans for now to hold talks on exchange rate matters with U.S. Treasury Secretary Scott Bessent. ECONOMIC IMPACT Japan failed to clinch a deal with the US before the July 9 expiration of Trump's temporary pause on his "reciprocal" tariffs, after it focused on eliminating a 25 per cent tariff on automobiles - a mainstay of its export-reliant economy. With an upper house election on July 20, Ishiba has said Japan will not make "easy concessions" for the sake of an early deal with Washington. Recent media polls have shown Ishiba's ruling coalition may fail to maintain a majority in the upper house, which could complicate trade negotiations, analysts say. U.S. tariffs also add to woes for Japan's economy, which shrank in the first quarter. Real wages in May fell at the fastest pace in nearly two years, while the government on Monday made the bleakest assessment of the economy in nearly five years. SMBC Nikko Securities expects 25 per cent US tariffs to knock 0.26 per cent point off Japan's economic growth in the current fiscal year ending in March 2026. "While Japan likely averted the worst-case scenario, 25 per cent tariffs would still hurt exporters' profits by up to 25 per cent," said Kazuki Fujimoto, an analyst at Japan Research Institute. "If corporate profits worsen, it's hard to avoid companies from toning down efforts to hike wages," he added.
