Kuala Lumpur: The ringgit experienced an upswing against the US dollar today, buoyed by a dip in the US Dollar Index (DXY), which saw a 0.71 percent decrease to 100.376. This decline follows a downgrade of the United States government’s sovereign credit rating.

According to BERNAMA News Agency, at 6 pm, the local currency rose to 4.2870/2945 against the greenback, compared to the previous close of 4.2900/2980 on Friday. Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, attributed the decline in the DXY to populist measures adopted by President Donald Trump’s administration. These measures are believed to compromise the US government’s capacity to manage the expanding budget gap and soaring debt.

Dr. Mohd Afzanizam observed that while Moody’s Rating has sustained its evaluation of the US dollar’s special status as a global reserve currency, current tariff shocks might have prompted traders and investors to reconsider this status. He noted that, despite the typical scenario where economic uncertainties lead to a significant appreciation of the US dollar, the currency appears somewhat unstable at present.

By the close of trading, the ringgit had weakened against a variety of major currencies. It fell against the Japanese yen to 2.9596/9650 from 2.9470/9527 on Friday, declined against the euro to 4.8344/8429 from 4.8022/8112, and depreciated against the British pound to 5.7420/7521 from 5.7018/7125.

The ringgit showed mixed performance against its ASEAN counterparts. It appreciated against the Philippine peso, moving to 7.69/7.71 from 7.71/7.73 last Friday. Conversely, it weakened against the Singapore dollar, dropping to 3.3135/3195 from 3.3041/3105, and against the Thai baht, it fell to 12.9630/9924 from 12.9003/9318. The ringgit remained stable against the Indonesian rupiah at 260.8/261.4, slightly changing from 260.8/261.5.