KUALA LUMPUR: The ringgit closed firmer against the US dollar today in line with most Asian currencies on optimism about the progress in US–China trade negotiations as leaders of both countries are scheduled to meet later this week.
At 6pm, the local currency was higher at 4.1380/1420 versus the greenback compared with 4.1480/1510 on Friday.
A dealer said US President Donald Trump and his Chinese counterpart Xi Jingping are expected to meet on the sidelines of the G20 summit in Osaka, Japan, sparking hopes among investors that the meeting might lead to a postponement of any further US tariff hike and open the door for negotiations to resume after talks broke down in May.
“Market anticipation of a resumption in trade talks should give a lift to the yuan and Asian currencies this week, in light of the previously dire mood over the global trade slowdown and worsening US–China trade relations,” he said.
He added that dovish comments from the US Federal Reserve have also resulted in broader dollar weakness and led to increased capital inflows for riskier regional assets, especially currencies.
At the close, the ringgit was mostly lower against a basket of major currencies.
The local currency weakened against the Singapore dollar to 3.0555/0595 from 3.0545/0576 on Friday but strengthened against the yen at 3.8547/8588 from 3.8568/8607.
The ringgit depreciated against the pound to 5.2797/2864 from 5.2505/2552 and eased against the euro to 4.7140/7202 from 4.6864/6915. — Bernama
Source: The Sun Daily