Ringgit opens higher against major currencies, slightly lower vs US dollar

On Thursday, the Malaysian ringgit opened stronger against a basket of major currencies but dipped slightly against the US dollar, according to early trading data. This movement was attributed to the release of stronger-than-expected US economic data, which supported the greenback. By 8am, the ringgit fell to 4.0790/4.0860 against the US dollar, down from its previous close of 4.0785/4.0820 on Wednesday.

Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, highlighted that the US final gross domestic product growth for the second quarter of 2026 was recorded at 2.2%, surpassing the consensus estimate of 1.5%. Similarly, the Automatic Data Processing (ADP) employment change rose to 90,000 in September, exceeding the market's forecast of 73,000. This positive economic data raised concerns about the likelihood of a rate hike in October, which fell from over 70% to below 50%.

Meanwhile, the Federal Reserve's preferred inflation gauge, the personal consumption expenditures (PCE) price index, remained steady at 3.4% in August, below the predicted 3.7%. This data prompted reassessment among markets regarding the possibility of a rate hike in October, although it was not entirely ruled out due to the favorable labor market figures.

Looking at the ringgit's performance against other currencies, it appreciated against the euro, British pound, and Japanese yen, while remaining relatively stable against the Singapore dollar, Thai baht, and Indonesian rupiah. The ringgit was unchanged against the Philippine peso at 6.51/6.52.