Ringgit opens higher against US dollar ahead of Q2 GDP data

The Malaysian ringgit started the day on a strong note against the US dollar on Wednesday, as it prepared to release its second quarter (Q2) gross domestic product (GDP) data on Aug 14, according to Afzanizam Rashid, the chief economist of Bank Muamalat Malaysia Bhd. Rashid stated that the economy could grow by 5.8% in Q2, driven by robust domestic performance.

He noted that the Malaysian economy had demonstrated its resilience, which would likely provide additional support to the ringgit. The local currency was projected to stay around RM4.08-RM4.09 against the US dollar. Meanwhile, the US Dollar Index (DXY) appeared relatively unchanged as traders and investors awaited the US consumer price index (CPI) data point later that evening.

The DXY was currently hovering between 99.72-99.89 points. The Malaysian currency opened slightly higher against a basket of major currencies at 8 am, but was mixed against regional currencies. It strengthened against the Japanese yen, slid against the euro, and eased against the British pound and the Singapore dollar.