Kuala Lumpur: The ringgit closed slightly higher against the US dollar on Tuesday, as traders remained cautious ahead of a significant meeting between United States President Donald Trump and China’s President Xi Jinping expected later this week, an analyst noted. At the close of trading, the local currency edged up to 4.2425/2485 per US dollar, a modest improvement from last Friday’s close of 4.2530/2605.

According to BERNAMA News Agency, Stephen Innes, managing partner at SPI Asset Management, highlighted that traders are adopting a wait-and-see approach in anticipation of the Trump-Xi meeting. This event is anticipated to be a pivotal factor influencing market risk dynamics for the remainder of the week. Innes pointed out the critical nature of the US-China relationship, given the US’s position as the leading global importer and China as the largest exporter. The outcome of their discussions could potentially shift market sentiment towards the dollar, alleviating concerns about supply chain disruptions and imported inflation.

This situation places emerging currencies like the ringgit in a reactive stance, influenced by the trade decisions of these economic superpowers, which heavily impact global pricing trends. Despite the ringgit’s slight gain against the US dollar, it ended the day lower against a basket of major currencies. The local note slipped against the Japanese yen, eased against the euro, and depreciated against the British pound compared to last Friday’s figures.

In contrast, the ringgit showed mixed results against its ASEAN counterparts. It recorded slight gains against the Indonesian rupiah and the Philippine peso but fell against the Singapore dollar and weakened vis-a-vis the Thai baht.