Ringgit ends marginally higher against US dollar, S&P Rating supports sentiment

KUALA LUMPUR: The Malaysian ringgit edged higher against the US dollar on Tuesday, buoyed by S&P Global Ratings reaffirming Malaysia's A- sovereign credit rating with a stable outlook. At 6pm, the ringgit reached 4.0790/0850 against the greenback, up from Monday's close of 4.0805/0845. The Finance Ministry attributed the improvement to Malaysia's resilient economy, diversification, steady growth, fiscal consolidation, monetary policy flexibility, and a supportive external position.

The stable outlook reflects S&P's belief that Malaysia's growth and policy environment will sustain steady fiscal performance over the next two to three years. US Dollar Index rose 0.19 percent to 101.391 points, while Bank Muamalat Malaysia Bhd economist Dr Mohd Afzanizam Abdul Rashid noted US Treasury yields and the prospect of further Fed rate hikes could make the US dollar more attractive to investors.

The ringgit's performance against major currencies and regional currencies was mixed, with gains against the euro, British pound, and Japanese yen, but a flat performance against the Philippine peso.