Ringgit opens higher on strong domestic economic data

The Malaysian ringgit began the day on a positive note on Wednesday, buoyed by impressive domestic economic figures that increased the likelihood of a potential normalization of the overnight policy rate. By 8am, the currency had risen to 4.0795/0850 against the US dollar, up from Tuesday's close of 4.0805/0845. Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, attributed this strength to robust economic indicators such as a surge in export growth and a notable increase in GDP expansion.

These strong data points have heightened expectations of an OPR normalisation. Trade data revealed that exports surged by 54.5% in September, while GDP expanded by 5.3% in the third quarter of 2026, surpassing market predictions. This contributed to a 0.27% decline in the US Dollar Index, settling at 101.707 points, which further bolstered the ringgit's value.

In the early hours, the ringgit showed a mixed performance against major currencies. It gained against the Japanese yen and the Philippine peso, but declined against the British pound and the euro. The currency's performance against its Asean counterparts was also varied, trading slightly higher against the Indonesian rupiah, while slipping against the Thai baht and Singapore dollar.