Ringgit firmer as Malaysia’s Q3 GDP growth beats expectations

The Malaysian ringgit strengthened against the US dollar on Monday as the country's third quarter economic growth exceeded expectations. The economy expanded by 5.3% in Q3 2026, surpassing the previously reported 6% growth in the previous quarter. This positive GDP growth could potentially lead to a normalization of monetary policy, according to Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd.

At 8am, the ringgit was trading at 4.0790/4.0855 against the US dollar, marking an improvement from Friday's close of 4.0795/4.0835. The stronger economic performance may encourage traders and investors to seek refuge in safe-haven assets such as US Treasury bonds, which could contribute to the ringgit's stability against the US dollar.

Meanwhile, concerns surrounding the valuations of AI-related stocks might prompt investors to turn to US Treasury bonds for safety, further bolstering the US dollar's position. As a result, the ringgit-US dollar exchange rate is expected to fluctuate between RM4.07 and RM4.08 throughout the day.

The ringgit also showed resilience against other currencies, with a slight improvement against the euro and British pound. However, it experienced a minor decline against the Japanese yen. Against its ASEAN counterparts, the ringgit exhibited an overall upward trend, strengthening against the Indonesian rupiah, Philippine peso, Singapore dollar, and Thai baht.