Ringgit opens marginally higher against US dollar

KUALA LUMPUR: On Thursday, the Malaysian ringgit opened marginally higher against the US dollar, driven by a slight uptick in buying interest following recent gains, although the favorable movement was curtailed by a stronger greenback, according to an analyst. At 8 AM, the local currency appreciated to 4.0235/0305 against the US dollar, up from Wednesday's close of 4.0240/0280.

Dr Mohd Afzanizam Abdul Rashid, the chief economist at Bank Muamalat Malaysia Bhd, noted that recent US economic indicators suggested that the US economy would likely remain robust in the third quarter of 2026 (Q3 2026). These indicators included a 0.4 percent month-on-month rise in personal income in July, a 0.2 percent month-on-month increase in personal spending, and a 1.1 percent month-on-month increase in durable goods orders.

Most significant among these figures was the 3.7 percent year-on-year rise in the Personal Consumption Expenditures (PCE) inflation rate, which serves as the Federal Reserve's preferred inflation metric. The US Dollar Index (DXY) has surged following the release of these data points, currently sitting at 99.165 points, up 0.25 percent from the previous close, Dr Rashid told Bernama.

Consequently, he forecasts the ringgit will fluctuate between RM4.03 and RM4.06 against the US dollar today. At the opening bell, the ringgit traded higher against a range of major currencies, including the Japanese yen, British pound, and euro. It also showed gains against the Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.