KUALA LUMPUR, Sept 22 — The ringgit opened slightly higher against the US dollar today, supported by Malaysia’s stable sovereign credit outlook and stronger domestic economic data.
At 8.02 am, the local note was quoted at 4.2000/2200 versus the greenback, compared with Friday’s close of 4.2040/2115.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said S&P Global Ratings’ recent affirmation indicated that the government’s sovereign rating remains stable.
“The country’s fiscal consolidation exercise has contributed positively to its creditworthiness. Malaysia’s fiscal deficit narrowed to 4.2 per cent of gross domestic product (GDP) in the first half of 2025 from 5.5 per cent in the same period last year, while the government debt level at 62 per cent of GDP remains below the statutory limit of 65 per cent,” he told Bernama.
On September 20, the Ministry of Finance said S&P had reaffirmed Malaysia’s sovereign credit ratings at ‘A-’ with a stable outlook, underscoring confidence in the country’s macroeconomic management despite global trade uncertainty.
It said the rating was supported by Malaysia’s well-diversified economy, political stability, steady growth momentum, balanced external position, and narrowing fiscal deficits.
Meanwhile, Mohd Afzanizam said the US Dollar Index (DXY) had rebounded after the US Federal Reserve (Fed) delivered an interest rate cut last week.
“The DXY is hovering around 97 points and may continue to do so as traders and investors await more signals this week. A series of Fed officials are due to speak at public forums, while data such as personal consumption expenditures (PCE) inflation will be closely monitored,” he said.
SPI Asset Management managing director Stephen Innes said expectations of two more US rate cuts this year should limit the ringgit’s downside in the near term.
“This comes after what appears to have been a positive phone conversation between China’s President Xi Jinping and US President Donald Trump on Friday, potentially paving the way for an in-person meeting at the 2025 Apec Economic Leaders’ Meeting in South Korea next month,” he added.
At the opening, the ringgit was also higher against a basket of major currencies.
It rose versus the Japanese yen to 2.8348/8485 from 2.8419/8471 at Friday’s close, firmed to 5.6540/6810 against the British pound from 5.6775/6876, and strengthened to 4.9279/9513 versus the euro from 4.9447/9536.
The local note was firmer against Asean currencies as well.
It advanced to 3.2670/2830 versus the Singapore dollar from 3.2744/2805, appreciated to 13.1707/2405 against the Thai baht from 13.1973/2271, edged up to 252.9/254.3 versus the Indonesian rupiah from 253.2/253.8, and strengthened to 7.35/7.39 against the Philippine peso from 7.36/7.38.
