Kuala Lumpur: The ringgit ended lower against the US dollar today due to a stronger US Dollar Index (DXY) following a downgrade by Moody’s Ratings. At 6 pm, the local note eased to 4.2705/2765 versus the US dollar from yesterday’s close of 4.2685/2735.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the ringgit maintained its positive trend in the morning session when the USD/MYR touched as low as RM4.2455 before weakening by the end of the day. He explained that the DXY has been lingering below 100 points as fears over fiscal burden have led traders and investors to avoid the US dollar. The recent rating downgrade by Moody’s has intensified the situation, as the new US administration is advocating for a tax cut bill that could exacerbate the US government debt level.

At the close, the ringgit showed mixed performance against a basket of major currencies. It edged up against the British pound to 5.7212/7292 from 5.7241/7308, and appreciated against the euro to 4.8218/8286 from the previous 4.8379/8436. However, it weakened against the Japanese yen to 2.9768/9812 from yesterday’s 2.9642/9679.

The local currency traded variably against its ASEAN counterparts. It improved against the Singapore dollar to 3.3061/3110 from 3.3071/3115 and gained strength against the Thai baht to 13.0000/0254 from 13.0121/0353. Conversely, the ringgit declined against the Philippine peso to 7.68/7.69 from 7.67/7.68 on Wednesday and dropped against the Indonesian rupiah to 261.5/262.0 from 260.2/260.7 previously.