Ringgit rises against major, Asean currencies ahead of 2Q GDP data

KUALA LUMPUR, Aug 14 - The Malaysian ringgit opened higher against major and ASEAN currencies as Malaysia's second quarter GDP data for 2026 is set to be released. By 8 am, the local currency traded at 4.0835/0895 against the US dollar, up from yesterday's closing rate of 4.0850/0890. Dr Mohd Afzanizam Abdul Rashid, the chief economist of Bank Muamalat Malaysia Bhd, expressed that if the actual GDP growth surpasses the estimated 5.8-5.9 percent, it would be beneficial for the ringgit.

He also pointed out that the US Dollar Index (DXY), which slipped by 0.05 percent to 99.960 points due to a milder US producer price index (PPI), would lower the likelihood of a September rate hike. Furthermore, July's PPI came in at 4.7 percent, a decrease from 5.0 percent, and the Core PPI moderated to 4.2 percent from 4.7 percent.

Dr Afzanizam suggested that the Federal Reserve may hold steady on the Fed Funds Rate during their September 15-17, 2026 meeting, as weak US job data and moderate inflation might suggest. The ringgit demonstrated strength against major currencies like the Japanese yen, British pound, Singapore dollar, Thai baht, Philippine peso, and Indonesian rupiah during today's opening.