Ringgit firms ahead of key GDP data as market sentiment improves

THE ringgit extended its upward momentum on Friday, buoyed by improving domestic sentiment and cautious optimism in global markets, as investors await the release of Malaysia’s advance estimate for first-quarter 2026 economic growth.

In early trading, the local currency strengthened to 3.9505/3.9565 against the US dollar, edging higher from Thursday’s close of 3.9520/3.9560, with analysts pointing to steady underlying support.

Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is likely to remain stable around the RM3.95 level in the near term.

“All eyes are on the advance estimate for Q1 2026 GDP, with median forecasts at 5.5% (Q4 2025: 6.3%). The data could support the ringgit,” he said.

Market participants are closely monitoring the data release at midday, with expectations that a solid growth figure could reinforce confidence in Malaysia’s economic trajectory and provide further support to the currency.

Beyond domestic factors, improving global sentiment has also played a role. Hopes surrounding a potential second round of talks between the United States and Iran, alongside prospects for a more durable ceasefire, have lifted risk appetite, benefiting emerging market currencies.

At the opening, the ringgit also advanced against a range of major currencies, reflecting broader demand.

It appreciated against the British pound to 5.3431/5.3512 from 5.3506/5.3560 previously, strengthened versus the euro to 4.6537/4.6608 from 4.6551/4.6598, and rose against the Japanese yen to 2.4812/2.4851 from 2.4848/2.4874.

Against regional peers, the performance was largely positive. The ringgit gained against the Singapore dollar to 3.1026/3.1078 from 3.1069/3.1103, climbed versus the Thai baht to 12.3222/12.3502 from 12.3473/12.3664, and edged higher against the Philippine peso to 6.58/6.60 from 6.59/6.60, while remaining broadly unchanged against the Indonesian rupiah at 230.5/230.9.

The currency’s performance underscores a combination of domestic resilience and external optimism, with upcoming economic data likely to set the tone for near-term market direction. - April 17, 2026