Ringgit strengthens against US dollar after robust third-quarter GDP estimate

KUALA LUMPUR, Oct 16 — The Malaysian ringgit strengthened against the US dollar on Friday, buoyed by Malaysia's more optimistic third-quarter GDP estimate for 2026. The currency surged to 4.0795/0835 against the greenback from Thursday's closing level of 4.0800/0835. The Department of Statistics Malaysia (DOSM) revealed in its Advance GDP Estimates for Q3 2026 that the economy expanded by 5.3% in the final quarter, up from the 6.0% growth in the previous quarter.

Dr Mohd Afzanizam, chief economist at Bank Muamalat Malaysia Bhd, commented that the announcement suggests the Malaysian economy is resilient. "It would not be surprising if the whole-year GDP exceeds the current projection of 4.8% to 5.3%, with the 9M 2026 GDP growth already at 5.5%," he said. The ringgit's performance against other currencies also varied, improving against the Japanese yen, weakening against the euro, and edging down against the British pound.

Compared to ASEAN peers, the ringgit gained against the Indonesian rupiah and slipped against the Philippine peso and Thai baht.