S&P reaffirmed Malaysia's A- rating, bolstering ringgit amid a firm US dollar
Malaysia’s finance ministry said S&P kept the country’s sovereign rating at A- with a stable outlook, while the ringgit edged higher against major currencies.
In a statement, Malaysia’s finance ministry announced that S&P has reaffirmed the nation’s sovereign credit rating at ‘A-’ with a stable outlook, highlighting the economy’s diversification, ongoing growth momentum, and gradual fiscal consolidation. The agency expects one outlet policy environment to sustain steady fiscal performance over the next two to three years. Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the US dollar stayed supported, with the Dollar Index up 0.19% and Treasury yields rising, making dollar-denominated assets more appealing.
He warned that further Federal Reserve rate hikes could keep the greenback strong. By 6 p.m., the ringgit improved to 4.0790/4.0850 against the dollar and gained against the euro, British pound and Japanese yen, while showing little change versus the Philippine peso. The currency also edged stronger against regional peers such as the Singapore dollar, Indonesian rupiah and Thai baht.
Why it matters
The rating reaffirmation underpins investor confidence and helps explain the ringgit’s modest gains against key currencies.
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