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.
Key Takeaway
Trump’s aggressive tariff rollout has triggered a sharp risk-off shift, erasing the dollar’s post-election rally and fueling a structural bearish turn in the FX market.
Highlights:
- Bloomberg Dollar Spot IndexDown to lowest levels since October 2024 — effectively wiping out all gains made since Trump’s November victory.
Market Reaction
Dollar fell 1.5% Thursday, continued to slide in Asian trading Friday.
All G10 currencies rallied — led by the Japanese yen and Swiss franc.
US 10-year Treasury yields dropped below 4%.
US equity market lost over $3 trillion in value Thursday.
Investor Sentiment Turning
CFTC data show speculative traders now net short the dollar — the first time since pre-election.
Amundi forecasts a 10% drop in the dollar this year amid recession risk.
ING warns the dollar is “naked” against weaker domestic growth.
- Shift in NarrativeEarly-year optimism from tax cuts and tariffs supporting a strong dollar has reversed. Analysts now highlight tariffs as a drag on growth, shifting sentiment toward safe havens.
- Strategic Insight“The famed ‘USD smile’ is now a sneer,” said Westpac’s Richard Franulovich, pointing to the breakdown in historical correlations between risk assets and the greenback.
Outlook:
With US rate cut expectations rising and global risk aversion escalating, the near-term dollar outlook remains bearish unless fiscal stimulus (e.g., tax cuts) is introduced to offset growth shocks.
Friday's US jobs data will be the next critical catalyst.
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