Ringgit seen at RM4.07-4.08 next week, supported by stronger Q2 GDP
KUALA LUMPUR: The ringgit is expected to trade around RM4.07 to RM4.08 with an upside bias next week, on sentiment brought about by Malaysia’s gross domestic product (GDP) announcement on Friday.
The ringgit is forecasted to hover between RM4.07 and RM4.08 with an optimistic outlook next week, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid. This positive sentiment is attributed to Malaysia's impressive second quarter GDP growth of six percent in 2026, which exceeded expectations by a notable margin.
The economist believes that this growth, combined with an upward trend in the technology sector and an increase in commodity prices, will continue to bolster the economy and strengthen the ringgit. Malaysia's GDP outpaced the consensus estimate of 5.8 percent, indicating the resilience of the economy despite external economic uncertainties.
Dr Rashid's prediction suggests that the second half of the year will likely remain stable and robust, thanks to supportive monetary and fiscal policies. Earlier, Bank Negara Malaysia attributed the GDP growth to strong domestic demand, robust exports, and steady household spending supported by consistent income growth and ongoing policy assistance.
Investment growth was further fueled by continued expenditure on structures, machinery, and equipment. The central bank highlighted that export growth, particularly in electrical and electronics products, services, and liquefied natural gas, played a significant role in Malaysia's Q2 performance, surpassing the 5.4 percent growth seen in Q1.
This upturn in exports was observed both on a weekly basis and against major global currencies, with the ringgit showing mixed performance against various currencies.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
