Ringgit opens higher against US dollar on upbeat GDP data

KUALA LUMPUR: The Malaysian ringgit opened stronger against the US dollar on Friday, buoyed by Malaysia's impressive second quarter 2026 (Q2 2026) Gross Domestic Product (GDP) growth of 6.0%, according to economist Afzanizam Rashid. At 8am, the local currency rose to 4.0830/4.0890 compared to Friday's closing rate of 4.0840/4.0885.

Rashid, the Chief Economist of Bank Muamalat Malaysia Bhd, noted that the Malaysian economy has been remarkably resilient, consistently outperforming expectations. "We anticipated the ringgit would hover around RM4.07 to RM4.09 today," he commented. Geopolitical risks, particularly those surrounding crude oil prices, continue to exert upward pressure on the ringgit, keeping it within a limited range against the dollar, according to Rashid.

The extent of this impact on inflation remains uncertain, contingent upon the US Federal Reserve's monetary policy decisions during their upcoming Federal Open Market Committee meeting on September 15-16, 2026. Meanwhile, the ringgit exhibited a mixed performance against other major currencies. It appreciated against the Japanese yen to 2.5645/2.5685, rose versus the euro to 4.7257/4.7326, and declined against the British pound to 5.5312/5.5394.

However, it weakened against the Singapore dollar to 3.1923/3.1975 and remained stable against the Philippine peso at 6.64/6.66. Its value towards the Indonesian rupiah also remained unchanged at 229.0/229.4.