Ringgit ends lower against greenback on weaker yuan

At 6pm, the ringgit decreased to 4.6610/6660 against the greenback from Monday’s close of 4.6550/6600.

PETALING JAYA: The ringgit ended lower against the US dollar yesterday following the weakening in the Chinese yuan after ratings agency Moody’s cut its outlook on China’s government credit ratings to negative.

At 6pm, the ringgit decreased to 4.6610/6660 against the greenback from Monday’s close of 4.6550/6600.

Bank Muamalat Malaysia chief economist Mohd Afzanizam Abdul Rashid said the downgrade from stable to negative suggests that the odds of possible sovereign rating cut for China has escalated.

“This happened as the China government is ramping up its fiscal stimulus measures to bolster its economic actitivities.

“This is as it needs to grapple with the weakening property markets.

“I think given that there is a positive correlation between the yuan and the ringgit, the weakneses in the yuan could result in a weaker ringgit,” he told Bernama.