Ringgit firmer on stronger-than-expected GDP growth

Malaysia's currency, the ringgit, strengthened against the US dollar on Friday following Malaysia's stronger-than-anticipated second-quarter GDP growth. Meanwhile, the US Dollar Index slipped 0.17% to 99.798 points after softer US inflation data, including the Consumer Price Index (CPI) and Producer Price Index (PPI). At 6pm, the ringgit traded 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 attributed Malaysia's Q2 2026 GDP growth, which exceeded expectations at 6.0%, to the country's economic resilience amidst global uncertainties. BNM highlighted domestic demand and robust exports as key drivers of this growth, with household spending bolstered by steady income growth and ongoing policy support, and investment growth fueled by continued spending on structures and machinery and equipment.

The external factors contributing to Malaysia's stronger-than-expected GDP growth included accelerated export growth, primarily driven by the strength in electrical and electronics (E&E) products, sustained expansion in services, and a rebound in liquefied natural gas (LNG) and non-E&E manufacturing exports.