Ringgit rises against US dollar as markets await 2Q GDP, US inflation data

KUALA LUMPUR, Aug 12 — The Malaysian ringgit opened stronger against the US dollar today, anticipated as investors and traders await Malaysia’s second quarter (2Q) gross domestic product (GDP) official figures, due for release on Aug 14, according to an economist. At 8 am, the local currency traded at 4.0895/0950 against the US dollar, up from yesterday’s close of 4.0905/0940.

Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, attributed the rise to the economy's robust performance, projecting expansion of 5.8 per cent in the 2Q. "The Malaysian economy has demonstrated remarkable resilience, which could provide additional support for the ringgit," he stated to Bernama. Meanwhile, he noted that the US Dollar Index (DXY) is currently stable as market participants anticipate the US consumer price index (CPI) data later in the day.

The DXY is hovering around 99.72-99.89 points, with consensus estimates predicting US CPI to hover at 3.4 per cent, a slight decrease from the actual June figure of 3.5 per cent. At the market opening, the ringgit was mostly higher against the Japanese yen, weaker against the euro, and mixed against the British pound. It also showed varying trends against regional currencies, including a rise against the Indonesian rupiah and a decline against the Thai baht and Singapore dollar, while remaining stable against the Philippine peso.