The ringgit opened slightly higher against the US dollar on Monday, supported by the Malaysian government's stable credit outlook and stronger domestic economic data.
At 9.50am, the ringgit was at 4.2080, down 0.10% against the US dollar since it opened early Monday in Asian trade.
Bank Muamalat Malaysia Bhd chief economist Dr Afzanizam Rashid said the recent S&P Global Ratings affirmation showed that the government's sovereign rating remained stable.
He said the country's fiscal consolidation exercise had contributed positively to its creditworthiness.
Malaysia's fiscal deficit narrowed to 4.2% of gross domestic product (GDP) in the first half of 2025 from 5.5% in the same period last year, while the government debt level at 62% of GDP remained below the statutory limit of 65%.
On September 20, the finance ministry said S&P had reaffirmed Malaysia’s sovereign credit rating at ‘A-‘ with a stable outlook, underscoring confidence in the country’s macroeconomic management despite global trade uncertainties.
The rating is supported by Malaysia’s diversified economy, political stability, steady growth momentum, balanced external position and narrowing fiscal deficit.
Meanwhile, Afzanizam said the US Dollar Index (DXY) had recovered after the US Federal Reserve (Fed) cut interest rates last week.
The DXY was hovering around 97 and is likely to continue to do so as market participants await more signals this week. A series of Fed officials are expected to speak at public forums, while data such as personal consumption expenditure (PCE) inflation will be closely watched.
At the opening, the ringgit was also higher against a basket of major currencies.
It rose against the Japanese yen to 2.8348/2.8485 from 2.8419/2.8471 at Friday's close, strengthened to 5.6540/5.6810 against the British pound from 5.6775/5.6876 and strengthened to 4.9279/4.9513 from the euro's 4.9447/4.9536.
The local note was also stronger against Asean currencies.
It rose to 3.2670/3.2830 against the Singapore dollar from 3.2744/3.2805, rose to 13.1707/13.2405 against the Thai baht from 13.1973/13.2271, rose to 252.9/254.3 against the rupiah from 252.9/254.3 and strengthened to 7.35/7.39 against the Philippine peso from 7.36/7.38.
