The ringgit continued its upward momentum against the US dollar and other major currencies at the opening on Tuesday, ahead of Malaysia’s second quarter 2025 gross domestic product (GDP) figures due on Friday.
At 8am, the local note appreciated to 4.2270/2460 versus the greenback from Monday’s close of 4.2320/2360. It also ended firmer against major currencies, edging up to 2.8528/8658 against the yen from 2.8657/8686, improving to 4.9097/9317 against the euro from 4.9269/9316, and rising to 5.6777/7032 versus the British pound from 5.6933/6987.
The ringgit also traded higher against regional peers, strengthening to 3.2841/2999 against the Singapore dollar from 3.2936/2973, advancing to 13.0198/0884 against the Thai baht from 13.0569/0769, inching up to 259.6/260.9 against the Indonesian rupiah from 259.9/260.3, and gaining to 7.41/7.44 against the Philippine peso from 7.42/7.43.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to trade within a range of RM4.23 to RM4.25 against the US dollar today.
He noted that the US Dollar Index (DXY) climbed 0.35 per cent to 98.52 points ahead of the US consumer price index (CPI) release later tonight. “Consensus estimates have pegged the headline and core CPI at a much higher rate of 2.8 per cent and 3.0 per cent, respectively, in July, up from 2.7 per cent and 2.9 per cent in June. Against such a backdrop, the US Federal Reserve (Fed) is seen to be keeping steady in the upcoming meeting in September,” he said.
Mohd Afzanizam added that traders are watching Malaysia’s GDP numbers for monetary policy cues, although with markets largely focused on trade talks, the data would need to significantly exceed expectations to provide strong support for the ringgit.
He also pointed out that the Reserve Bank of Australia is set to announce its interest rate decision today, with consensus expecting a 25-basis point cut to 3.60 per cent.
