As at 9am, the ringgit was quoted at 4.2780/2880 from yesterday’s close of 4.2750/2800.

An analyst said the fresh threat by President Donald Trump to cut ties with China is expected to worsen the already sluggish global economy due to the Covid-19 pandemic.

“With consumption at a low point now due to rising unemployment globally, the trade spat will only put a grinding stop in the economic recovery especially for emerging markets,” she said.

Malaysia is a nation that relies heavily on free trade and are trading partners to both the US and China.

Yesterday, President Donald Trump renewed his threat to cut ties with China, a day after the country’s trade representative Robert Lighthizer told Congress he did not see decoupling economies as a viable option.

Chinese officials meanwhile have remained on the sidelines on the matter.

Over the past decade, China’s global trade has grown steadily and as of 2019, it holds about 15% of the global trade share worth approximately US$5.2 trillion with its largest export being telecommunication systems and smartphones.

For the US, its largest export category comprises of capital goods followed by commercial aircraft, industrial machines and well as semiconductors.

Meanwhile, the ringgit was traded mostly higher against benchmark currencies.

It increased to 3.0664/0747 from 3.0713/0760 against the Singapore dollar but declined against the Japanese yen to 4.0004/0109 from 3.9942/9996 from yesterday’s close.

The local note also rose to 5.3103/3231 from 5.3416/3491 vis-a-vis the British pound, and strengthened against the euro to 4.7922/8051 from 4.8089/8163 yesterday.