KUALA LUMPUR, Aug 31 — The ringgit is expected to be range-bound and hold its ground next week, as there were positive developments revolving the US-China trade talks.

Phillip Capital Management senior vice-president (investment) Datuk Dr Nazri Khan Adam Khan said China softened its tone on Thursday to prevent the trade tensions from escalating further.

"Both parties are expected to resume another round of trade talks in September ahead of a looming deadline for additional US tariffs on Chinese goods.

"We expect the improved sentiment on the trade war will send the local market higher ahead of the long weekend holiday,” he told Bernama

According to reports, China indicated that it would not immediately retaliate against the latest US tariff increase announced by US President Donald Trump last week, saying that it was more important to discuss removing the extra duties.

Meanwhile, the foreign exchange market will be closed on Monday in lieu of Awal Muharram which falls on Sunday. The operations will resume on Tuesday.

For the week just ended, the local market was lower as investors cautiously awaited the the US-China trade war developments.

The ringgit ended the week weaker at 4.2030/2080 from 4.1900/1930 last Friday.

The local currency also traded lower against most other major currencies.

It was down against the Singapore dollar at 3.0281/0319 from 3.0213/0237 and depreciated versus the Japanese yen to 3.9487/9545 from 3.9284/9327.

The local unit also edged down vis-to-vis the pound to 5.1230/1308 from 5.1147/1201 and trimmed against the euro to 4.6393/6465 from 4.6333/6383. — Bernama