KUALA LUMPUR: The ringgit ended higher on Tuesday due to rising fears of a possible United States (US) government shutdown, an analyst said.
Reports indicate that the US federal government risks a shutdown if Congress does not reach a funding agreement before the new fiscal year starts on October 1.
At 6 pm, the local note rose to 4.2050/2090 against the greenback compared with Monday’s close of 4.2150/2200.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said an indication from US vice president JD Vance that a government shutdown seems likely has taken a toll on the US dollar.
"The US Dollar Index (DXY) fell 0.21 per cent to 97.699 points, as this event appears to increase the likelihood of a US interest rate cut,” he told Bernama today.
At the close, the ringgit was mixed against a basket of major currencies.
It appreciated to 5.6532/6586 against the British pound from 5.6612/6679 at Monday’s close, weakened to 2.8420/8447 against the Japanese yen from 2.8365/8400, and weakened slightly to 4.9405/9452 versus the euro from 4.9387/9446.
The local note was traded mostly higher against ASEAN currencies. It advanced to 3.2604/2638 vis-a-vis the Singapore dollar from 3.2664/2706 at Monday’s close, edged up against the Indonesian rupiah to 252.3/252.6 from 252.6/253.1 previously, and inched up versus the Philippine peso at 7.22/7.24 from 7.25/7.26 yesterday’s close.
The ringgit also appreciated to 12.9744/9927 against the Thai baht from 13.0649/0857 previously. - Bernama
