Kuala Lumpur:The ringgit saw a slight increase against the US dollar on Tuesday, buoyed by positive market sentiment following S&P Global Ratings' reaffirmation of Malaysia's 'A-' sovereign credit rating with a stable outlook.

According to BERNAMA News Agency, the ringgit closed at 4.0790/0850 against the greenback, improving from Monday's close of 4.0805/0845. The Finance Ministry noted that S&P's reaffirmation highlights Malaysia's economic resilience and diversification, sustained growth, gradual fiscal consolidation, robust monetary policy flexibility, and a historically supportive external position.

The stable outlook is expected to support steady fiscal performance over the next two to three years, reflecting S&P's confidence in Malaysia's growth momentum and policy environment.

Meanwhile, Dr. Mohd Afzanizam Abdul Rashid, the chief economist at Bank Muamalat Malaysia Bhd, observed that the US dollar remained supported, with the US Dollar Index (DXY) increasing by 0.19 percent to 101.391 points. The rise in US Treasury yields has made bonds more attractive, while potential interest rate hikes by the US Federal Reserve could further draw investors to US dollar-denominated assets.

As of the closing, the ringgit also showed gains against several major currencies, including the euro, British pound, and Japanese yen. It strengthened against ASEAN currencies such as the Singapore dollar, Indonesian rupiah, and Thai baht, while remaining flat against the Philippine peso.