Qualampur: Ringit today rated Moody’s rating against the US dollar recently led to a decline on the increasing debt of US credit rating.
At 8.03 am, the local note appreciated 4.2850/3140 vs Greenback with a shutdown of 4.2900/2980 last Friday.
Moody’s rating has downed the AAA to the US sovereign rating from AA1 last Friday.
Bank Malaysia Malaysia BHD Chief Economist Dr. Mohammad Afzanim Abdul Rashid said that the mainstay for such a step was the US government’s debt, which would probably increase and its fiscal deficit would deteriorate.
“However, the credit rating agency continued to accept the special status of the US dollar as a global reserve currency.
“On that note, the US dollar may fall from the index (DXY) knee reaction,” he told Bernma.
Therefore, he today expected local notes and other emerging market currencies against the US dollar.
In the opening, Ringit traded against a basket of most major currencies.
It increased the Euro from 4.8022/8112 to 4.7495/8269 in the last Friday’s bandh, but slipped from 5.7018/7125 to 5.7020/7406 against British pounds and Japanese Yen was before 2.9509/9711 to 2.9509/9527.
However, local notes were mostly traded against their ASEAN colleagues.
It climbed 3.3041/3105 to Singapore dollars at 3.3010/3236 last Friday, received 7.70/7.75 to 7.71/7.73 against Philippine Peso and strengthened against Indonesian Ruperium from 260.5/262.4 to 260.5/261.5.
Ringit fell against Thai Baht 12.9024/13.0026 to 12.9003/9318.
