Ringgit Up Against Major Currencies But Eases Versus Dollar

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It appears that until the government shutdown is resolved, the US dollar will continue to be in a favourable condition, says analyst.
KUALA LUMPUR: The ringgit slipped further against the US dollar at the close on Tuesday as investors turned to the greenback to hedge against market volatility amid escalating trade tensions between the US and China
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the DXY index climbed 0.08% to 99.347 points.
“Investors remained wary of the state of trade (between the US and China) and the ongoing US government shutdown. It is increasingly difficult to assess the macroeconomic condition in the US in the absence of key data points. It appears that until the government shutdown is resolved, the US dollar will continue to be in a favourable condition,” he added.
President Donald Trump has said the US will impose a 100% tariff on imports from China, along with restrictions on US tech exports, starting Nov 1, or sooner, depending on China’s response to trade issues.
At 6 pm, the local currency eased to 4.2305/4.2355 against the US dollar from Monday’s close of 4.2265/4.2295.
The ringgit mostly strengthened against a basket of major currencies.
It rose against the euro to 4.8879/4.8937 from 4.9006/4.9041 at yesterday’s close, strengthened against the British pound to 5.6118/5.6184 from 5.6369/5.6409, but edged lower versus the Japanese yen to 2.7808/2.7843 from 2.7775/2.7796.
Against Asean currencies, the ringgit also closed mostly higher.
It appreciated versus the Thai baht to 12.8975/12.9182 from 12.9878/13.0030, ticked up against the Singapore dollar to 3.2512/3.2553 from 3.2562/3.2587, and improved against the Indonesian rupiah to 254.8/255.2 from 255.0/255.3 previously.
The local currency traded flat versus the Philippine peso at 7.26/7.27 from 7.26/7.26. - FMT

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