Ringgit ends slightly higher against US dollar after S&P reaffirms Malaysia’s A- rating

KUALA LUMPUR, Sept 29 — The Malaysian ringgit ended marginally higher against the US dollar today, buoyed by S&P Global Ratings’ reaffirmation of the country's 'A-' sovereign credit rating with a stable outlook. The ringgit closed at 4.0790/0850 against the greenback, up from yesterday's close of 4.0805/0845. The Finance Ministry attributed the gain to the economy's resilience, diversification, steady growth, fiscal consolidation, flexible monetary policy, and favorable external position.

S&P's stable outlook suggests that Malaysia's growth momentum and current policy environment should maintain steady fiscal performance over the next two to three years. Meanwhile, Bank Muamalat Malaysia's chief economist, Dr Mohd Afzanizam Abdul Rashid, noted that the US dollar's strength was due to higher US Treasury yields and expectations of further interest rate hikes by the Federal Reserve, making US dollar-denominated assets more attractive.

Throughout the day, the ringgit also strengthened against various major currencies, including the euro, British pound, Japanese yen, Singapore dollar, Indonesian rupiah, and Thai baht. However, it remained unchanged against the Philippine peso.