Ringgit rises as Trump-Xi meeting looms
Malaysia’s currency strengthened against the US dollar on Tuesday morning as American government operations faced disruption and trade disputes with China intensified. The ringgit reached 4.2165 per dollar at 8 am compared with 4.2240 at Friday’s close.
Bank Muamalat Malaysia’s chief economist said the currency had entered oversold territory and showed potential for further gains. Markets anticipated a quarter-point Federal Reserve rate cut with 98.9 percent probability despite limited official economic data.
Traders adopted a cautious stance ahead of next week’s meeting between Presidents Trump and Xi Jinping. China’s refusal to purchase American soybeans had damaged US agricultural interests and created uncertainty about negotiations.
The ringgit advanced against major currencies except the Thai baht. Trading resumed on Tuesday after Monday’s Deepavali holiday closure.
