Ringgit ends marginally higher, S&P rating supports sentiment
Market sentiment was supported by S&P Global Ratings’ reaffirmation of Malaysia’s ‘A-’ sovereign credit rating with a stable outlook.
KUALA LUMPUR: The ringgit finished slightly higher against the US dollar today, buoyed by a reaffirmation of Malaysia's 'A-' sovereign credit rating by S&P Global Ratings. The finance ministry disclosed that S&P Global Ratings maintained Malaysia's 'A-' sovereign credit rating with a stable outlook, emphasizing the resilience of the economy, sustainable growth momentum, progressive fiscal consolidation, adaptable monetary policy, and a historically strong external position.
This favorable outlook suggests that Malaysia's growth momentum and current policy environment are expected to maintain steady fiscal performance over the next two to three years, according to the ministry.
Afzanizam Abdul Rashid, the chief economist of Bank Muamalat Malaysia Bhd, commented on the US dollar's stability, noting that it was supported with the US Dollar Index up 0.19% to 101.391 points. He attributed this to higher US Treasury yields, indicating that US Treasury bonds have become more attractive, and the expectation of additional interest rate hikes by the Federal Reserve, which could make US dollar-denominated assets more appealing to investors due to favorable interest rate differentials.
The ringgit closed the trading day at 4.0790/4.0850 against the US dollar, up from yesterday's close of 4.0805/4.0845. Throughout the day, it rose against several major currencies, including the euro (4.6235/4.6303), the British pound (5.3937/5.4016), and the Japanese yen (2.5869/2.5909). Conversely, it remained unchanged against the Philippine peso at 6.52/6.53.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
