The ringgit continues to record a downward trend against the US dollar
Named
August 2, 2023 20:27 MYT
At the same time, the local currency traded mostly low compared to other ASEAN currencies. - File photo/Bernama
The ringgit continues to record a downward trend against the US dollar
At the same time, the local currency traded mostly low compared to other ASEAN currencies. - File photo/Bernama
KUALA LUMPUR: The ringgit continued its downward trend to close lower against the US dollar today, in line with other emerging currencies as concerns over the global economic outlook led more investors to turn to safe-haven currencies, an analyst said.
At 6pm, the local currency slipped to 4.5400/5450 against the US dollar from 4.5175/5200 on Tuesday.
A trader said most Asian currencies were lower against the US dollar today, led by the Korean won following a downgrade by Fitch Ratings on US sovereign credit that prompted risk aversion.
In a statement, Fitch said tax reductions and new spending initiatives in addition to various economic shocks have increased the budget deficit while the medium-term challenges related to rising eligibility costs have yet to be addressed.
"The downgrade of the US rating reflects expected fiscal pressures over the next three years, a high and growing government debt burden and a deterioration in governance relative to 'AA' and 'AAA' rated peers over the past two decades," according to Fitch.
The ringgit also traded lower against a group of major currencies.
It slipped against the Japanese yen to 3.1824/1861 from 3.1666/1686 yesterday, eased against the euro to 4.9831/9886 from 4.9584/9612 and eased against the pound to 5.7994/8085 from 5.7892/7924 previously.
At the same time, the local currency traded mostly low compared to other ASEAN currencies.
The ringgit eased against the Singapore dollar to 3.3944/3984 from 3.3872/3893 on Tuesday, but rose against the Philippine peso to 8.22/8.24 from 8.24/8.25 previously.
It eased against the Indonesian rupiah to 299.1/299.6 from 298.8/299.1 on Tuesday and eased against the Thai baht to 13.2504/2716 from 13.1852/1982 previously.
-- BERNAMA
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