Ringgit opens firmer on weaker US dollar, Q4 GDP optimism

 Investors are awaiting the final reading of Q4 2025 gross domestic product growth due to be released today, says analyst.

KUALA LUMPUR:

 The ringgit opened firmer against the US dollar today, hovering near its strongest level in almost eight years, as persistent weakness in the greenback and improving domestic economic prospects lifted sentiment towards the local currency.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit is likely to remain supported as traders and investors await the final reading of fourth-quarter (Q4) 2025 gross domestic product (GDP) growth, to be released later today.

“There is growing optimism that Q4 2025 growth could exceed the advance estimate of 5.7%, with the ringgit appearing to establish a new base amid encouraging domestic data and continued weakness in the US dollar.

“The RM3.90 level is seen as a psychological barrier, while technical indicators suggest immediate support at RM3.87.

“Barring any major external shocks, the ringgit is expected to maintain its positive momentum against the greenback,” he told Bernama.

At 8am, the ringgit rose to 3.8945/3.9110 against the US dollar from yesterday’s close of 3.8995/3.9060.

It last traded near that level on April 23, 2018, at 3.8965/3.8995.

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

It edged up against the Japanese yen to 2.5494/2.5604 from 2.5499/2.5543 at yesterday’s close, strengthened against the euro to 4.6224/4.6420 from 4.6346/4.6423, and appreciated versus the British pound to 5.3035/5.3260 from 5.3220/5.3309.

The local currency also firmed against its Asean peers.

It improved against the Indonesian rupiah to 231.4/232.5 from 231.7/232.2, advanced against the Singapore dollar to 3.0850/3.0986 from 3.0931/3.0985, rose against the Thai baht to 12.5257/12.5885 from 12.5998/12.6273, and was higher versus the Philippine peso at 6.70/6.73 from 6.71/6.72. - FMT