KUALA LUMPUR, May 19 — The ringgit ended higher against the United States (US) dollar today, supported by a weaker US Dollar Index (DXY), which fell 0.71 per cent to 100.376 following a downgrade of the United States government's sovereign credit rating.
At 6pm, the local note rose to 4.2870/2945 versus the greenback from Friday’s close of 4.2900/2980.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the decline in the DXY was due to populist measures by President Donald Trump’s administration, which are likely to compromise the US government’s ability to contain the widening budget gap and ballooning debt.
“While Moody’s Rating has maintained its assessment of the US dollar’s special status as a global reserve currency, the current tariff shocks may have resulted in traders and investors reassessing such a proposition.
“However, this is a structural issue that may require a longer time horizon,” he told Bernama.
In the meantime, the US dollar appears to be a little edgy despite heightened economic uncertainties, which generally result in significant appreciation of the US dollar.
The ringgit traded lower against a basket of major currencies at the close.
It depreciated against the Japanese yen to 2.9596/9650 from Friday’s 2.9470/9527, eased vis-à-vis the euro to 4.8344/8429 from 4.8022/8112, and fell against the British pound to 5.7420/7521 from 5.7018/7125.
The local note was mixed against its Asean peers.
It appreciated vis-à-vis the Philippine peso to 7.69/7.71 from 7.71/7.73 last Friday, but decreased against the Singapore dollar to 3.3135/3195 from 3.3041/3105, and declined against the Thai baht to 12.9630/9924 from 12.9003/9318.
However, the ringgit was flat against the Indonesian rupiah at 260.8/261.4 from 260.8/261.5.
— Bernama
