The Malaysian Ringgit continued its streak of strength against the major currencies on Wednesday, fueled by fears surrounding U.S. fiscal policy. The Ringgit scored very notable victories against the Singapore dollar. It similarly appreciated against the Thai baht, Philippine peso, and many other G-20 currencies. This increase demonstrates the currency’s strength against an uncertain and unprecedented economic backdrop.
In the previous trading day, the Ringgit strengthened to 3.2891/2940 against the Sing dollar from 3.3061/3110. The execution of this shift illustrates a re-found confidence in the Malaysian currency as it further demonstrates momentum in regional markets. Likewise, the Ringgit was higher against the Thai baht at 12.9744/13.0012 compared with 13.0000/0254 last Friday.
The currency strengthened against the fresh Philippine peso, rising to 7.65/7.66 from 7.68/7.69. The Ringgit at one point spiked above 4.2285/2345 against the U.S. dollar. This is a notable increase from the 4.2705/2765 close at 6 PM yesterday.
Other currencies reflected this strengthening trend. The Ringgit appreciated against the British pound, up at 5.7072/7153 from 5.7212/7292. It made strong advances against the euro, trading at 4.7985/8053 from 4.8218/8286 previously. For one, it spiked dramatically vs. the Japanese yen, rising to 2.9502/9546 from 2.9768/9812. At the same time, it appreciated against the Indonesian rupiah, climbing to 260.7/261.1 from 261.5/262.0.
Dr Mohd Afzanizam Abdul Rashid explained this movement in currency values, placing it within the context of larger economic trends.
“This corresponds with the recent sovereign rating downgrade by Moody’s Ratings.” – Dr Mohd Afzanizam Abdul Rashid
Analysts say that unknowns surrounding the future of U.S. fiscal policy have added to the Ringgit’s breakout. In times of global financial instability, investors are attracted to their stability as an alternative currency. These movements in currency value show Malaysia’s continuing resilience to external pressures and continued ability to keep investors engaged.
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