Ringgit Trades Cautiously Amid Geopolitical Uncertainty

The Malaysian ringgit closed slightly higher against the US dollar on Tuesday, despite cautious sentiment among investors. The exchange rate climbed to 4.0730/0775 from Monday's close of 4.0755/4.0800.

According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the ringgit is being traded cautiously due to ongoing geopolitical developments, including the United Nations General Assembly and a meeting between US President Donald Trump and Chinese President Xi Jinping.

These events have weighed on investor sentiment, with markets coming to terms with the likelihood of tight monetary policy until inflation reaches its two percent target. Brent crude prices remain above $100 per barrel, reflecting the fragile geopolitical situation.