Ringgit Treads Water Ahead of Geopolitical Showdown

The Malaysian ringgit closed marginally higher against the US dollar on Tuesday, September 22, trading within a narrow range due to investor caution ahead of key geopolitical developments this week.

Investors are monitoring events such as the United Nations General Assembly and an upcoming meeting between US President Donald Trump and Chinese President Xi Jinping for their potential impact on markets.

Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, said that interest rate hikes by major central banks have led markets to expect tight monetary policy until inflation reaches 2%.

The ringgit traded mostly higher against a basket of major currencies, gaining against the euro and British pound but weakening against the Japanese yen. It also traded mixed against its Asean peers.