Ringgit rises against US dollar ahead of Q3 GDP estimates

KUALA LUMPUR: The Malaysian ringgit climbed higher against a weaker US dollar as investors awaited the nation's third-quarter GDP figures, scheduled for release on Friday. By 6pm, the ringgit had climbed to 4.0800/4.0835 against the greenback, up from yesterday's closing rate of 4.0805/4.0850. Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, stated that Malaysia's Q3 2026 GDP is estimated at approximately 5.2%.

"While slowing from 6% in the previous quarter, the economy is projected to remain robust, buoyed by steady domestic demand and investment activities," he explained to Bernama. Afzanizam further noted that the US Dollar Index (DXY) unexpectedly fell, despite higher-than-anticipated US inflation, with the September Consumer Price Index (CPI) rising to 3.7% from 3.4% in August, surpassing the market's forecast of 3.6%.

In fixed-income markets, the 10-year US Treasury yield slipped by 10 basis points to 5.09%, indicating stronger demand for safe-haven assets following a decline in technology stocks, especially those related to artificial intelligence (AI). "Investors seem to be reevaluating US growth prospects in light of mounting concerns over elevated valuations and financing costs in the AI sector," Afzanizam remarked.

The ringgit traded lower against a basket of major currencies at the close, weakening against the Japanese yen, euro, and British pound. However, it gained against the Indonesian rupiah, Philippine peso, Singapore dollar, and Thai baht.