Ringgit firms as stronger-than-expected 2Q GDP supports local currency

At 6 pm on August 14, the Malaysian ringgit showed strength against the US dollar, trading at 4.0840/0885 compared to its previous close of 4.0850/0890. This gain was fueled by Malaysia's second quarter (2Q) GDP growth for 2026, which outperformed expectations at 6.0 per cent, exceeding the consensus estimate of 5.8 per cent. Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid attributed this growth to Malaysia's economic resilience amidst global uncertainties.

Bank Negara Malaysia (BNM) reported the strong performance was driven by domestic demand and robust exports, with household spending bolstered by steady income growth and ongoing policy support. Investment growth was further supported by continued spending on structures and machinery and equipment. BNM noted that external factors, particularly a surge in export growth fueled by electrical and electronics products, services expansion, and a rebound in liquefied natural gas (LNG) and non-E&E manufacturing exports, contributed to the positive economic outlook.

The ringgit, however, showed a mixed performance against regional currencies, trading slightly higher against the Philippine peso but falling against the Japanese yen, British pound, euro, Indonesian rupiah, and Singapore dollar.