Ringgit firmer on stronger-than-expected GDP growth

 Malaysia's Q2 2026 GDP growth of 6.0%, above the 5.8% consensus forecast, provided support for the ringgit, says an analyst.

KUALA LUMPUR:

The ringgit firmed against the US dollar on Friday, supported by Malaysia’s stronger-than-expected second-quarter (Q2 2026) GDP growth. 

Meanwhile, softer US inflation data, reflected in the Consumer Price Index (CPI)  and Producer Price Index (PPI), pushed the US Dollar Index down 0.17% to 99.798 points. 

At 6pm, the ringgit traded higher at 4.0840/4.0885 versus the US dollar, up from Thursday’s close of 4.0850/4.0890.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said Malaysia’s Q2 2026 GDP grew higher than expected at 6.0%, surpassing the consensus estimate of 5.8%.

“This suggests that the Malaysian economy remained resilient despite having to contend with the heightened economic uncertainties from abroad,” he told Bernama.

Earlier today, Bank Negara Malaysia (BNM) said the growth was driven by continued domestic demand and robust exports.

“Household spending was supported by steady income growth and ongoing policy support, while investment growth was underpinned by continued spending on structures and machinery and equipment,” the central bank said in a statement today.

Malaysia’s Q2 performance exceeded the 5.4% growth registered in Q1.

BNM said on the external front, export growth accelerated, driven mainly by continued strength in electrical and electronics (E&E) products and sustained expansion in services, as well as a rebound in exports of liquefied natural gas (LNG) and non-E&E manufacturing products.

Meanwhile, the local currency ended lower against a basket of major currencies.

It fell against the Japanese yen to 2.5660/2.5690 from 2.5634/2.5660 at Thursday’s close and eased vis-à-vis the British pound to 5.5232/5.5293 from 5.5119/5.5173 previously.

It fell against the euro to 4.7182/4.7234 from 4.7120/4.7167.

The local currency traded mixed against regional currencies.

It was marginally higher against the Philippine peso at 6.64/6.66 from 6.66/6.67 and edged up against the Thai baht to 12.3153/12.3333 from 12.3239/12.3412. 

Against the Indonesian rupiah, it fell to 229.0/229.4 from 228.4/228.8 at yesterday’s close, while against the Singapore dollar, the local currency declined to 3.1924/3.1964 from 3.1912/3.1945 on Thursday. - FMT