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 Malaysian ringgit marginally improved against the US dollar today, buoyed by a reaffirmation of the country's 'A-' sovereign credit rating by S&P Global Ratings. The finance ministry reported that S&P has maintained Malaysia's sovereign credit rating at 'A-' with a stable outlook. This positive outlook is a result of the economy's resilience, diversification, steady growth, gradual fiscal consolidation, flexible monetary policy, and a historically strong external position.
The ministry believes that these factors will sustain steady fiscal performance over the next two to three years. Meanwhile, Bank Muamalat Malaysia Bhd's chief economist, Afzanizam Abdul Rashid, noted that the US dollar remained supported, with the US Dollar Index rising slightly to 101.391 points. He suggested that higher US Treasury yields made US Treasury bonds more attractive, while the Federal Reserve's anticipated interest rate hikes could also make greenback-denominated assets more appealing to investors due to ongoing favorable interest rate differentials.
The ringgit's performance against a basket of major currencies and the main data points expected tonight were also discussed.
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.
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