Ringgit ends week higher as weak US data weighs on dollar

Expectations of a September Federal Reserve interest rate hike remain intact despite weaker US economic data, says analyst.

KUALA LUMPUR:

The ringgit ended the week marginally higher against the US dollar following weaker-than-expected US economic data, although sentiment towards the greenback remained firm, as expectations of a Federal Reserve (Fed) interest rate hike in September stayed intact.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said expectations of a September interest rate hike by the Fed stayed intact despite weaker US economic data, helping to limit the US dollar’s losses.

“The US’ second-quarter 2026 gross domestic product (GDP) growth came in below expectations at 1.5% compared with the consensus estimate of 2.1%.

“Meanwhile, the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, moderated to 3.7% in June from 4.1% in May,” he told Bernama.

At 6pm, the local currency appreciated to 4.0835/4.0875 versus the greenback from yesterday’s close of 4.0875/4.0930.

The ringgit traded lower against a basket of major currencies at the close.

It eased versus the Japanese yen to 2.5520/2.5548 from 2.5029/2.5064 at yesterday’s close, depreciated vis-à-vis the euro to 4.6981/4.7027 from 4.6863/4.6926 yesterday and declined versus the British pound to 5.4923/5.4977 from 5.4691/5.4764 previously.

The ringgit also traded lower against regional currencies.

It weakened versus the Thai baht to 12.2264/12.2435 from 12.1637/12.1852 at yesterday’s close, declined against the Indonesian rupiah to 226.6/226.8 from 225.7/226 previously, depreciated vis-à-vis the Philippine peso to 6.66/6.67 from 6.64/6.65, and slipped against the Singapore dollar to 3.1823/3.1856 from 3.1701/3.1746. - FMT