Ringgit ends higher vs greenback following stronger-than-expected GDP

 

The ringgit closed higher against the US dollar, following the stronger-than-expected gross domestic product announcement last Friday, an economist said.

At 6pm, the ringgit rose to 3.8945/9055 versus the greenback from Friday’s close of 3.9060/9115.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the current official GDP forecast of 4.0-4.5 percent for 2026 is likely to be revised upward, supported by the country’s resilient economy amidst external uncertainties.

“This would mean that the overnight policy rate (OPR) would be kept steady in 2026 as there is no urgency to overstimulate the economy,” he told Bernama.

Meanwhile, he said the US consumer price index inflation, which continues to moderate in January, has renewed expectations that the US Federal Reserve will resume its monetary easing in the second half of 2026 (2H 2026).

“This essentially will reduce the interest rate gap between the OPR and federal funds rate,” he added.

According to Afzanizam, the prevailing support level stands at RM3.8722. A break below this level would open the way to the next support level of RM3.6519.

Ringgit doing better than Asean peers

At the close, the ringgit traded higher against a basket of major currencies.

It appreciated versus the Japanese yen to 2.5356/5430 from 2.5435/5474 at last Friday’s close, strengthened against the euro to 4.6204/6335 from 4.6325/6390 last week, and rose vis-à-vis the British pound to 5.3137/3287 from 5.3211/3286 previously.

The local note also traded higher against its Asean peers.

The ringgit improved versus the Singapore dollar to 3.0860/0949 from 3.0904/0950 last Friday, was higher versus the Thai baht at 12.5205/5619 from 12.5607/5849, edged up against the Indonesian rupiah to 231.4//232.2 from 231.9/232.4 at last Friday’s close, and was firmer against the Philippine peso at 6.71/6.74 from 6.73/6.74 previously.

Bursa Malaysia Bhd and its subsidiaries will be closed on Feb 17 (Tuesday) and Feb 18 (Wednesday) in conjunction with the Chinese New Year public holiday, and will resume operations on Feb 19 (Thursday).

- Bernama