Ringgit continues upward momentum against dollar

KUALA LUMPUR: The ringgit continued its upward momentum today against the greenback due to weakening of the dollar as concerns arises in the United States over a second government shutdown and the ongoing US-China trade tension.

As at 9am today, the local note stood at 4.0630/0660 against Friday’s close of 4.0670/0720.

Maybank Kim Eng in a research note today said worry of a second government shut down rose after negotiations in the congress over funding for a security wall in US-Mexico border hits a snag.

“Negotiations can still get back on track but getting a deal by Friday’s deadline seem to have been derailed just as the lawmakers thought they were on track to reach a compromise,” it said.

On the prolong trade tension between Washington and Beijing, another analyst said that investors are now eyeing the emerging markets as US and China will be heading for another trade discussion on Feb 14 and 15.

It was reported that China’s Vice-Premier Liu He will be joining US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in a high-level trade talks between the two countries next week.

Back home, the ringgit was traded higher against other major currencies.

It strengthened against the Singapore dollar to 2.9963/9992 from Friday’s 2.9988/9029 and inched up against the yen to 3.6994/7031 from 3.7023/7079.

Against the euro, the local unit rose to 4.6005/6056 from 4.6059/6124 and appreciated against the British pound to 5.2559/2614 from 5.2590/2667 on Friday.