Ringgit rises against greenback, major currencies on strong March trade data

 Malaysia’s economy showed resilience, with early estimates indicating over 5% GDP growth in Q1 2026, says analyst.

KUALA LUMPUR:

 The ringgit edged higher against the US dollar and other major currencies in early trade on Friday, supported by resilient Malaysia’s trade data for March.

At 8am, the local currency was marginally higher at 3.9620/3.9680 against the greenback, compared with 3.9630/3.9670 at yesterday’s close.

According to the Department of Statistics Malaysia (DOSM), Malaysia’s total trade in March 2026 expanded 9.3 year-on-year to RM273.0 billion from RM249.8 billion a year earlier, driven by stronger growth in exports and imports.

DOSM said exports rose 8.3% to RM148.8 billion, while imports increased 10.4% to RM124.2 billion. The trade surplus narrowed 0.9% to RM24.6 billion in March 2026.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the Malaysian economy has demonstrated resilience, with advance estimates showing first-quarter 2026 gross domestic product growth above 5%.

He added that the latest international trade statistics indicated nominal exports grew 12.7% in the first quarter of 2026, compared with 11% in the preceding quarter.

“Hence, the Malaysian economy is in a position of strength to withstand current challenges arising from oil shocks due to the war in Iran,” he told Bernama.

Afzanizam said foreign fund flows in capital markets had also been favourable, suggesting stronger demand for the ringgit from foreign investors.

“As such, the ringgit should be well supported despite ongoing concerns over the war in Iran,” he added.

He said the ringgit remained one of the best-performing currencies in Asia on a year-to-date basis, ranking second behind the Chinese yuan.

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

It strengthened against the British pound to 5.3348/5.3429 from 5.3504/5.3558 at yesterday’s close and rose against the euro to 4.6288/4.6358 from 4.6343/4.6390. It also gained against the Japanese yen to 2.4800/2.4839 from 2.4809/2.4836.

The local currency traded mixed against Asean peers.

It appreciated against the Singapore dollar to 3.1004/3.1053 from 3.1041/3.1075 at Thursday’s close and rose against the Thai baht to 12.1911/12.2175 from 12.2066/12.2242. It was flat against the Indonesian rupiah at 229.2/229.6 and unchanged versus the Philippine peso at 6.55/6.56. - FMT