The ringgit opened stronger against the US dollar on Tuesday, supported by concerns that a possible US government shutdown could weigh on the USD.
Reports showed that the US federal government is on the verge of a shutdown unless the US Congress reaches a funding deal before the start of the new fiscal year on October 1.
At 10am, the ringgit was at 4.2130, stable since it opened early Tuesday in Asian trading.
Bank Muamalat Malaysia Bhd chief economist Dr Afzanizam Rashid said a US government shutdown would be significant, as it could hamper the functioning of key agencies such as the Bureau of Labor Statistics.
He noted that the release of key data points, such as the Non-Farm Payroll (NFP) report scheduled for this Friday, may be delayed.
He added that it would make it difficult to see the latest trends in the US labour market at a time when the Federal Reserve (Fed) has highlighted increasing downside risks to employment.
Afzanizam said the US Dollar Index (DXY) fell about 0.25% to 97.906 points.
The ringgit is expected to trade between RM4.20 and RM4.21 today.
At the opening, it was mostly higher against a basket of major currencies.
It strengthened to 2.8340/2.8399 against the Japanese yen from 2.8365/2.8400 at Monday's close, it rose to 5.6582/5.6696 against the British pound from 5.6612/5.6679, but eased to 4.9404/4.9504 from the euro's 4.9387/4.9446.
The local currency was also mostly higher against Asean currencies, except for the Thai baht.
It rose to 3.2653/3.2723 against the Singapore dollar from 3.2664/3.2706, appreciated against the Indonesian rupiah at 252.5/253.1 from 252.6/253.1, appreciated against the Philippine peso at 7.24/7.25 from 7.24/7.25 and it depreciated to 13.0669/13.1002 against the Thai baht from 13.0649/13.0857 previously.
