Ringgit strengthens as resilient 2Q economy boosts investor sentiment

KUALA LUMPUR, Aug 17 — Malaysia's ringgit opened stronger against the US dollar following the Malaysian economy's impressive second quarter 2026 (2Q 2026) Gross Domestic Product (GDP) growth of 6.0 per cent, according to an economist. By 8 am, the local currency had reached 4.0830/0890 against the greenback, up from its previous close of 4.0840/0885.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam attributed the rise to the resilience of the Malaysian economy, which has consistently outperformed expectations. He predicted that the ringgit would remain within the RM4.07 to RM4.09 range for the remainder of the day. Geopolitical risks, particularly fluctuations in crude oil prices, continue to influence the ringgit's value against the US dollar, creating a narrow trading range.

Traders and investors are uncertain about how these external factors will impact inflation, which will largely depend on the decisions made by the US Federal Reserve (Fed) during their Federal Open Market Committee meeting on Sept 15 and 16, 2026. The local currency showed mixed performance against other major currencies. It strengthened against the Japanese yen, the euro, and the Singapore dollar, while it weakened against the British pound.

Against regional currencies, the ringgit was marginally higher against the Singapore dollar but weaker against the Thai baht. It remained unchanged against the Philippine peso and flat against the Indonesian rupiah.