Ringgit expected to trade in tight range against US dollar
KUALA LUMPUR: The ringgit is expected to trade within a tight range with an upward bias next week, between RM4.07 and RM4.09, following Malaysia’s higher-than-expected advance estimate of gross domestic product (GDP) growth for the third quarter of 2026 (Q3 2026).
KUALA LUMPUR: The Malaysian ringgit is forecast to fluctuate within a narrow range, leaning upward, between RM4.07 and RM4.09 in the upcoming week, following Malaysia's surprisingly robust GDP growth estimate for the third quarter of 2026. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid revealed that the GDP growth for Q3 2026 was higher than anticipated at 5.3 percent.
This indicates a resilient Malaysian economy, with full-year growth potentially surpassing the current projection of 4.8 to 5.3 percent, with the first nine months of 2026 already at 5.5 percent growth. According to the Statistics Department, Malaysia's economy grew by 5.3 percent in Q3 2026, following a 6.0 percent expansion in the previous quarter.
All economic sectors, except mining and quarrying, contributed to the performance, while mining and quarrying contracted. For the first three quarters of 2026, the economy registered a growth of 5.5 percent, surpassing 4.8 percent in the same period in 2025. The services sector led economic growth in Q3 2026, with a 5.4 percent increase driven by wholesale and retail trade, information and communication, and finance and insurance sub-sectors.
The ringgit strengthened against the US dollar on a Friday-to-Friday basis, rising from 4.0830/0875 to 4.0795/0835. However, it traded lower against a basket of other major currencies and depreciated against the Thai baht.
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