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 strengthened marginally against the US dollar today with market sentiment supported by S&P Global Ratings’ reaffirmation of Malaysia’s ‘A-’ sovereign credit rating.

In a statement today, the finance ministry said S&P has reaffirmed Malaysia’s ‘A-’ sovereign credit rating with a stable outlook, citing the economy’s resilience and diversification, sustained growth momentum, gradual fiscal consolidation, strong monetary policy flexibility and a historically supportive external position.

The ministry said the stable outlook reflects S&P’s expectation that Malaysia’s growth momentum and prevailing policy environment will support steady fiscal performance over the next two to three years.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the US dollar remained supported, with the US Dollar Index rising 0.19% to 101.391 points.

He said higher US Treasury yields suggested that US Treasury bonds had become more attractive, while expectations of further interest rate hikes by the Federal Reserve could also make the greenback more appealing to investors as interest rate differentials continued to favour US dollar-denominated assets.

“Tonight, the main data points will be the US Conference Board Consumer Confidence Index and the US Job Openings and Labour Turnover Survey.

“Judging from the US interest rate futures, the odds are for a total 50 basis points rise for the remainder of 2026 as the inflation rate remains stubbornly above the 2% target,” he told Bernama.

At 6pm, the ringgit improved to 4.0790/4.0850 against the greenback from yesterday’s close of 4.0805/4.0845.

At the closing, the ringgit traded higher against a basket of major currencies.

It increased against the euro to 4.6235/4.6303 from 4.6416/4.6461 at yesterday’s close, climbed vis-à-vis the British pound to 5.3937/5.4016 from 5.4099/5.4152, and gained versus the Japanese yen to 2.5869/2.5909 from 2.5994/2.6021.

Against Asean currencies, the local note strengthened versus the Singapore dollar to 3.1885/3.1934 from 3.1914/3.1948 at yesterday’s close, rose against the Indonesian rupiah to 226.8/227.2 from 226.9/227.2, and advanced against the Thai baht to 12.1402/12.1632 from 12.1429/12.1588 previously.

However, the local note was flat against the Philippine peso at 6.52/6.53. - FMT