Ringgit Gains on S&P Rating Boost
The Malaysian ringgit strengthened marginally against the US dollar on Tuesday, driven by S&P Global Ratings' reaffirmation of Malaysia's 'A-' sovereign credit rating with a stable outlook.
The Finance Ministry announced that S&P has maintained its 'A-' rating, citing the country's economic resilience and diversification, sustained growth momentum, gradual fiscal consolidation, strong monetary policy flexibility, and a historically supportive external position.
The ministry stated that the stable outlook reflects S&P's expectation of steady fiscal performance over the next two to three years, supported by Malaysia's growth momentum and prevailing policy environment.
Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the US dollar remains supported due to higher US Treasury yields and expectations of further interest rate hikes by the US Federal Reserve, making US dollar-denominated assets more appealing to investors.