The ringgit opened higher against the US dollar and most major currencies on Friday as markets awaited Malaysia’s second-quarter 2026 gross domestic product (GDP) figures, with growth expected to remain firm.
At 8am, the ringgit strengthened to 4.0835/0895 against the US dollar from Thursday’s close of 4.0850/0890.
Economists expect Malaysia’s 2Q GDP to expand by between 5.8% and 5.9%, supported by stronger activity in the manufacturing and mining sectors.
“If the number exceeds the estimate, it will be positive for the ringgit,” Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama.
The local currency was also supported by a weaker US dollar following softer US producer price data, with the US Dollar Index (DXY) down 0.05% at 99.960 points.
Afzanizam said July’s US producer price index (PPI) eased to 4.7% from 5.0%, while core PPI moderated to 4.2% from 4.7%.
“Weak (US) jobs data and moderate inflation suggest the Federal Reserve (Fed) would incline to keep the Fed Funds Rate steady when the Federal Open Market Committee (FOMC) members reconvene for the Sept 15-17, 2026 meeting.
“As such, this could be positive for the ringgit as the interest rate differential would remain unchanged,” he said.
Against major currencies, the ringgit rose to 2.5608/5648 against the Japanese yen from 2.5634/5660 and strengthened against the pound to 5.5086/5167 from 5.5119/5173.
It weakened slightly against the euro to 4.7099/7168 from 4.7120/7167.
Against regional currencies, the ringgit edged up against the Singapore dollar to 3.1895/1944 from 3.1912/1945 and strengthened against the Thai baht to 12.3086/3326 from 12.3239/3412.
It was little changed against the Philippine peso at 6.65/6.67 compared with 6.66/6.67 previously, while it remained flat against the Indonesian rupiah at 228.4/228.8.
