Investors were adopting a wait-and-see approach ahead of tomorrow's economic data from Bank Negara Malaysia and the statistics department, says an analyst.
At 6pm, the ringgit eased to 4.0850/4.0890 versus the US dollar from Wednesday’s close of 4.0835/4.0875.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said investors were adopting a wait-and-see approach ahead of tomorrow’s economic data from Bank Negara Malaysia and the statistics department (DoSM).
Malaysia’s advance GDP estimate for Q2 2026 expanded by 5.8% year-on-year (y-o-y), accelerating from Q1 2026, which stood at 5.4%.
“It is highly likely that the numbers will be met, or perhaps surpass expectations, based on indicators such as the Industrial Production Index (IPI) and Malaysia’s services activity,” he told Bernama.
Malaysia’s IPI rose by 6.5% y-o-y in June 2026, continuing the positive momentum across all sectors, while Malaysia’s services activity, as measured by the sector’s volume index, rose 5.9% y-o-y in Q2, driven by stronger wholesale and retail trade, food and beverage as well as accommodation activities, DoSM reported previously.
On the US dollar’s performance, Afzanizam said the slight moderation in the US inflation rate to 3.4% suggested that a rate hike decision at the Federal Open Market Committee’s September meeting was not a done deal.
“The US CPI index released yesterday pointed to the possibility of maintaining the interest rate in the September meeting instead of raising it further. Hence, it is about the interest rate differential between the US rate and the overnight policy rate and which one is more attractive to investors,” he added.
Meanwhile, at the close, the local currency ended mostly higher against a basket of major currencies.
It climbed against the Japanese yen to 2.5634/2.5660 from 2.5655/2.5682 at Wednesday’s close and improved vis-à-vis the British pound to 5.5119/5.5173 from 5.5180/5.5234 previously.
But it fell against the euro to 4.7120/4.7167 from 4.7107/4.7153.
The local note traded mixed against regional currencies.
It was marginally higher against the Philippine peso to 6.66/6.67 from 6.67/6.68 and edged up against the Thai baht to 12.3239/12.3412 from 12.3488/12.3665.
Against the Indonesian rupiah, it was unchanged at 228.4/228.8 from 228.4/228.7 registered at yesterday’s close, while against the Singapore dollar, the local note declined to 3.1912/1945 from 3.1905/1941 on Wednesday. - FMT
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