KUALA LUMPUR, April 8 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) erased earlier gains to close marginally lower on Tuesday as mild bargain hunting activities were offset by cautious mode over ongoing global uncertainties. At 5 pm, the benchmark index slipped 0.24 of-a-point, or 0.02 per cent, to 1,443.56 from yesterday’s close of 1,443.80. The benchmark index opened 7.63 points firmer at 1,451.43 and climbed to as high as 1,454.58 in early trade before retreating to a low of 1,440.89 towards the end of the morning trading session. It then moved in a yo-yo mode during the afternoon session. In contrast, the broader market was positive with gainers outpacing decliners 669 to 367, while 419 counters were unchanged, 894 counters untraded, and nine others suspended. Turnover dwindled to 3.32 billion units valued at RM2.83 billion against 5.35 billion units valued at RM4.67 billion on Monday.
The U.S. dollar fell sharply Thursday as traders rushed into traditional safe havens like the Japanese yen and Swiss franc, reacting to President Trump’s sweeping new tariff package that intensified fears of a global economic slowdown.
Key Market Reactions
| Currency | Move Against USD |
|---|---|
| Japanese Yen (JPY) | +0.95% (¥147.99) |
| Swiss Franc (CHF) | +0.60% (CHF 0.8787) |
| Euro (EUR) | +0.43% (US$1.0875) |
| British Pound (GBP) | +0.28% (US$1.3047) |
| Chinese Yuan (CNH) | Hit 1-month low offshore |
| Australian Dollar | -0.5% (US$0.6268) |
| NZ Dollar | -0.26% (US$0.5730) |
| Mexican Peso | -0.25% (20.2520 per USD) |
What Triggered the Move?
President Trump announced a 10% universal tariff and higher duties on ~60 countries.
Tariffs target major trading partners including China (54%), Vietnam, Japan, and the EU.
Investors fear an escalating global trade war, causing a flight to safety.
“The markets are in risk-off mode and pricing in weaker global economic growth.”— Kyle Rodda, Capital.com
Safe Havens Back in Focus
Yen and Swiss franc surged as classic safe-haven plays.
Short-duration Treasuries also favored, with interest rate futures now pricing in at least 3 Fed cuts in 2025 — and possibly a fourth.
“Treasuries and the yen are the top-tier safe-haven trades in this environment.”— John Hardy, Saxo Bank
Euro Holds Up Despite EU Tariffs
The euro strengthened as Europe’s measured response (rather than retaliation) reassured investors.
Analysts suggest markets view the EU’s calm policy stance as stabilizing.
“The market has liked that approach of calmness and measuredness from Europe.”— Rodrigo Catril, NAB
Takeaway
The dollar’s pullback reflects a shift in global sentiment: risk-off mode is back, safe-haven flows are accelerating, and Fed rate cut expectations are rising. With U.S. tariffs taking effect on April 9, FX volatility is likely to persist as markets assess retaliation risk and macro fallout.
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