Ringgit Rises Amid Us Shutdown Trump Xi Meeting Uncertainty

---

The local note inches up to 4.2235/4.2345, with no clear signs that the US government impasse will be resolved soon.
KUALA LUMPUR: The ringgit opened slightly higher against the US dollar on Wednesday amid the US government shutdown and uncertainty over the meeting between US President Donald Trump and Chinese President Xi Jinping next week, an analyst said
At 8.02am, the local note inched up to 4.2235/4.2345 against the greenback from 4.2280/4.2315 at Tuesday’s close.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US government shutdown has gone into its third week with no concrete signs the impasse will be resolved soon.
“The latest indication from Trump on his meeting with Xi next week remains uncertain, suggesting the trade tension is likely to be persistent.
“The lack of US data due to the government shutdown has resulted in greater degree of economic uncertainties,” he added.
On that note, he expected the ringgit to trade cautiously with dollar-ringgit expected to range between RM4.22 and RM4.23 today.
At the opening, the ringgit traded higher against major currencies and Asean currencies.
It advanced against the British pound 5.6447/5.6594 from 5.6592/5.6639, strengthened against the euro to 4.8993/4.9120 from 4.9134/4.9174 and gained against the Japanese yen to 2.7817/2.7892 from 2.7851/2.7875 at Tuesday’s close.
Against its Asean peers, the ringgit appreciated against the Singapore dollar at 3.2523/3.2613 from 3.2598/3.2628 at yesterday’s close and improved versus the Thai baht to 12.8413/12.8806 from 12.9048/12.9218 previously.
It was marginally higher against the Indonesian rupiah to 254.6/255.4 from 254.8/255.2 and rose against the Philippine peso at 7.25/7.27 from 7.26/7.27 previously. - FMT

---