Ringgit opens higher against US dollar on upbeat GDP data

 The local currency strengthens to 4.0830/4.0890, tracking stronger-than-expected Q2 growth of 6.0%.

KUALA LUMPUR:

The ringgit opened higher against the US dollar, tracking Malaysia’s stronger-than-expected second quarter 2026 (Q2 2026) Gross Domestic Product (GDP) growth of 6.0%, said an economist.

At 8am, the local currency strengthened to 4.0830/4.0890 against the greenback from Friday’s close of 4.0840/4.0885.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the Malaysian economy has remained resilient and continues to surprise on the upside, following the latest Q2 2026 GDP data.

“On that note, we opined that the ringgit would linger around RM4.07 to RM4.09 today,” he added.

On external developments, Afzanizam said geopolitical risk continues to exert upward pressure on crude oil prices, keeping the ringgit in a tight range against the greenback.

He said traders and investors were uncertain how this would play out and impact inflation, which ultimately hinges on how the US Federal Reserve (Fed) decides its monetary policy in the next Federal Open Market Committee meeting on Sept 15 and 16, 2026.

Meanwhile, the local currency opened mixed against a basket of major currencies.

It increased against the Japanese yen to 2.5645/2.5685 from 2.5660/2.5690 at Friday’s close and gained vis-à-vis the euro to 4.7257/4.7326 from 4.7182/4.7234.

It fell against the British pound to 5.5312/5.5394 from 5.5232/5.5293 previously.

The local note traded mixed against regional currencies.

It was marginally higher against the Singapore dollar to 3.1923/3.1975 from 3.1924/3.1964 previously, but lower against the Thai baht to 12.3190/12.3442 from 12.3153/12.3333.

The local currency remained unchanged vis-à-vis the Philippine peso at 6.64/6.66 and flat versus the Indonesian rupiah, at 229.0/229.4 from Friday’s close. - FMT