Latest news with #USdollar
News24
6 hours ago
- Business
- News24
Rand slumps to weakest level in months after Trump hits world with new tariffs
The rand hit R18.23/$ on Friday morning as the US currency continued to gain ground. The dollar headed for its best week in almost three years against its major peers, maintaining momentum on Friday after US President Donald Trump imposed new tariff rates on dozens of trade partners, including 30% duties on SA products. The US dollar index - which measures the currency against a basket of six major peers including the euro, yen, Swiss franc and Canada's dollar - is on course to rise 2.5% this week, its best weekly performance since a 3.1% rally in September of 2022. On Friday, it rose 0.1% to 100.14, the highest since May 29. The rand was also trading at its weakest level since May against the dollar. It lost more than 3% of its value this week. Apart from the trade turmoil, the currency also came under pressure after a local rate cut. US rates were kept unchanged this week. Lower interest rates make rand assets less appealing to traders seeking short-term returns. Some countries fared much worse than others in tariff rates, hitting their currencies. Canada received a 35% levy instead of an earlier threatened 25%, pushing the loonie down 0.12% to C$1.3872, its lowest since May 22 versus its U.S. peer. The Swiss franc eased as much as 0.26% to 0.8120 per dollar after Trump set a 39% duty on Swiss imports, up from the 31% he previously mooted. Among Asian currencies, the Philippine peso slumped to its weakest level in six months, while Taiwan's dollar hit its lowest since early June. South Korea, which got its trade deal late Wednesday, also saw the won swept up in the declines, with the currency falling to levels last seen in mid-May. The euro remained pinned near an almost two-month low around $1.1412, as it continues to be weighed down by what markets see as a lopsided trade agreement with Washington. That wasn't far from Wednesday's low of $1.1401, a level not seen since June 10. "In the short-term, you can make the case for more dollar strength," said Mike Houlahan, director at Electus Financial in Auckland. "The lion's share of the tariff news has washed through." "The big move of the week has really been the euro getting rerated downwards," he said. "The net result would be the EU-U.S. trade deal is a further headwind for the euro." The EU's framework trade agreement with the US, struck on Sunday, was quickly criticized by French leaders and the German head of the European Parliament's trade committee as being unfair for Europe. The US dollar stayed strong even though Trump continued his attacks on Federal Reserve Chair Jerome Powell overnight, calling him a "terrible" Fed Chair and calling his own decision to appoint Powell to the position a "mistake". Trump's repeated threats to fire Powell and calls for the Fed to drastically cut rates have put the central bank's independence in question, hurting the dollar in recent months. The Fed shrugged off that pressure on Wednesday by holding policy steady, citing "somewhat elevated" inflation and a "solid" labour market. A crucial economic test comes in the form of monthly payrolls data later in the day, with economists forecasting that employment growth slowed to 110,000 new jobs in July. Some analysts see that as a Goldilocks result, which would allow the Fed to resume rate cuts without sounding alarm bells. "Data-wise, the US looks resilient," said Shoki Omori, chief desk strategist at Mizuho Securities. "If the US economy is already operating above potential, that bump can translate into a slightly higher neutral rate of interest, which is supportive for front-end bond yields and therefore the US dollar," he said.
Malay Mail
10 hours ago
- Business
- Malay Mail
Ringgit holds steady as US eases Malaysia tariffs, other majors slip
KUALA LUMPUR, Aug 1 — The ringgit opened flat against the US dollar but rose against other major currencies, with investors still weighing the outcome of the Federal Open Market Committee (FOMC) meeting and Washington's reciprocal tariff measures, which take effect today. At 8am, the local note stood at 4.2650/2850 against the US dollar, almost unchanged from Thursday's close of 4.2650/2730. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the newly announced tariff will likely support the ringgit and lift investor sentiment. Earlier, the United States announced a reduced tariff of 19 per cent on Malaysian imports, effective August 1, 2025. On July 7, US President Donald Trump said Washington would impose a 25 per cent tariff on all Malaysian products entering the country, separate from existing sectoral tariffs. The new rate, effective today, is one percentage point higher than the 24 per cent announced in April. Mohd Afzanizam noted that the US Dollar Index (DXY) continued to rise, gaining 0.15 per cent to reach 99.968 points, supported by the tariff decision and a stronger-than-expected Personal Consumption Expenditures (PCE) price index, which climbed to 2.6 per cent in June. He said the data suggested inflationary risks remained and could prompt the Federal Reserve (Fed) to keep the Fed Funds Rate unchanged at its September meeting. 'Against such a backdrop, the ringgit is expected to stay soft, possibly around RM4.26. Yesterday, the ringgit weakened by 0.61 per cent to close at RM4.2690. 'It appears that, following the FOMC meeting, the US dollar gained traction as the Fed remains committed to its restrictive policy stance to contain inflation risks,' he added. At the opening, the ringgit was higher against other major currencies. It strengthened against the Japanese yen to 2.8277/8411 from 2.8443/8498 on Thursday, rose against the British pound to 5.6328/6592 from 5.6426/6532, and gained against the euro to 4.8711/8939 from 4.8766/8857. The ringgit was mixed against regional peers. It was little changed against the Philippine peso at 7.31/7.35 from 7.31/7.33 and flat against the Indonesian rupiah at 259.1/260.5 from 259.1/259.7. The local note rose against the Thai baht to 13.0169/0876 from 13.0448/0753 and strengthened versus the Singapore dollar to 3.2856/3012 from 3.2889/2953. — Bernama
Russia Today
21 hours ago
- Business
- Russia Today
Trump threatens BRICS with tariffs over ‘anti-US' agenda
US President Donald Trump has said he is considering tariffs on BRICS nations, accusing the group of adopting anti-US policies. Earlier, Trump warned that any attempt by the group to challenge the US dollar would be met with harsh economic measures. BRICS members targeted by his latest sanctions, such as India and Brazil, said they would protect their domestic interests. Speaking at the White House on Wednesday, he claimed the group is working to weaken the dollar and strip it of its role as the world's reserve currency. 'They have BRICS, which is basically a group of countries which are anti the United States, and India is a member of that if you can believe it,' Trump said. 'It's an attack on the dollar, and we're not going to let anybody attack the dollar.' The same day, Trump announced that India will face 25% tariffs and additional penalties starting on Friday over its continued trade with Russia. He said the tariffs were imposed partly because of India's membership in BRICS, and partly because of what he called a 'tremendous' trade deficit with New Delhi. Trump also imposed a 50% tariff on all goods from Brazil effective August 1, claiming the country poses a threat to 'the national security, foreign policy, and economy' of the US. BRICS was established in 2006 by Brazil, Russia, India, and China, with South Africa joining in 2010. Over the past year, it has extended membership to Iran, Egypt, Ethiopia, the United Arab Emirates, and Indonesia. BRICS partner countries include Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, and Uzbekistan. Russian Foreign Minister Sergey Lavrov has said BRICS countries are seeking alternatives to the dollar to shield themselves from Washington's 'arbitrariness,' calling the shift irreversible. Last year, Russia's Finance Ministry said national currencies made up 65% of BRICS trade, with the dollar and euro falling below 30%. Deputy Foreign Minister Sergey Ryabkov said BRICS is not a rival to the US, but warned that 'the language of threats and manipulation… is not the way to speak to members of this group.'
CNA
a day ago
- Business
- CNA
Tariffs pose a risk to Taiwan's economic outlook, central bank minutes show
TAIPEI :Taiwan's central bank cautioned that U.S. tariffs are clouding the economic outlook for the second half of 2025, despite easing inflation, and called for more flexibility in monetary policy, minutes from the latest board meeting showed on Thursday. "Domestic inflation has continued easing and the economic conditions remain stable, heightened uncertainty in the international economic and trade environment may weigh on Taiwan's economic growth" in the second half, several board members said. In a widely expected move in June, the central bank left the benchmark discount rate unchanged at 2 per cent, a level it has maintained since March 2024. The central bank said inflation was expected to gradually decline for the remainder of the year, but its overall monetary policy stance remained hawkish. One board member, who was not identified in the minutes of the June meeting, said that retaining policy flexibility would enable timely adjustments if needed. Another board member said that despite the Israel-Iran conflict, the Taiwan dollar appreciation against the U.S. dollar in recent months had helped dampen import prices, which would likely further reduce inflationary pressures. Taiwan's inflation rate - 1.37 per cent in June and its slowest pace in 51 months - has been much milder than that of economies in Europe and the United States, and its benchmark interest rate has also been correspondingly lower. The central bank - which has 14 members on its board - holds its next quarterly rate-setting meeting on September 19.
Malay Mail
a day ago
- Business
- Malay Mail
Ringgit rises ahead of 13MP tabling, boosted by growth hopes and stronger demand
KUALA LUMPUR, July 31 — The ringgit opened higher against the US dollar and a basket of major currencies on Thursday, ahead of the 13th Malaysia Plan (13MP) announcement this afternoon, said Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid. At 8am, the local note strengthened to 4.2370/2570 against the greenback from Wednesday's close of 4.2410/2455. Prime Minister Datuk Seri Anwar Ibrahim is scheduled to table the 13MP in Parliament later today. Mohd Afzanizam said the 13MP has raised expectations of higher development spending, which could support stronger economic growth. 'The 13MP allocation is likely to spur domestic demand, particularly in construction-related sectors,' he told Bernama. Meanwhile, Mohd Afzanizam noted that the US Dollar Index (DXY) continued to climb, reaching 99.82 points, after the Federal Open Market Committee (FOMC) of the US Federal Reserve (Fed) opted to keep the Fed Funds Rate unchanged at 4.25–4.50 per cent. He said the US Fed has revised down its economic outlook, citing a moderation in activity during the first half of 2025. 'This aligns with the second-quarter GDP print of 3.0 per cent, largely driven by a sharp 30 per cent drop in imports, which led to a significant net export contribution to overall growth. 'The decision to maintain the policy rate was not unanimous, as two Fed members voted in favour of a quarter-point cut,' he added. For now, Mohd Afzanizam said the development remains positive for the greenback, as wide interest rate differentials continue to favour the US dollar. As such, the ringgit is expected to trade within the RM4.24 to RM4.25 range today. At the opening, the ringgit traded higher against major currencies. It appreciated against the Japanese yen to 2.8394/8530 from 2.8646/8678 at Wednesday's close, rose against the British pound to 5.6161/6427 from 5.6745/6805, and strengthened versus the euro to 4.8420/8649 from 4.8996/9048. The local unit was also higher against most regional currencies, although flat against the Philippine peso at 7.36/7.40 from 7.36/7.38 previously. It edged up against the Indonesian rupiah to 258.2/259.6 from 258.5/258.9, gained on the Singapore dollar to 3.2695/2852 from 3.2919/2957, and improved against the Thai baht to 12.9433/13.0136 from 13.0528/0719. — Bernama
