Kuala Lumpur: The ringgit opened higher against major and Asean currencies ahead of Malaysia’s gross domestic product (GDP) announcement for the second quarter of 2026 (Q2 2026) today, an economist said.
The consensus estimate is that Malaysia’s Q2 GDP is expected to grow by 5.8%-5.9%, underpinned by stronger performance in manufacturing and mining sectors.
“If the number exceeds the estimate, it will be positive for the ringgit,” Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid told Bernama.
He also noted that the US Dollar Index (DXY), down by 0.05% to 99.960 points following a softer US producer price index (PPI), would reduce the chance of a rate hike in September.
He said July’s PPI came in at 4.7% versus 5%, while Core PPI also 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.
At 8am, the local currency rose to 4.0835/4.0895 against the greenback from yesterday’s close of 4.0850/4.0890.
Meanwhile, the local currency was higher against a basket of major currencies at today’s opening.
It climbed against the Japanese yen to 2.5608/2.5648 from 2.5634/2.5660 at yesterday’s close and improved vis-à-vis the British pound to 5.5086/5.5167 from 5.5119/5.5173 previously.
However, it fell against the euro to 4.7099/4.7168 from 4.7120/4.7167.
The local note was traded mixed against regional currencies.
It was marginally higher against the Singapore dollar to 3.1895/3.1944 from 3.1912/3.1945 and was up vis-à-vis the Thai baht to 12.3086/12.3326 from 12.3239/12.3412 at yesterday’s close.
The local note was traded with little change against the Philippine peso at 6.65/6.67 from 6.66/6.67 and was flat versus the Indonesian rupiah at 228.4/228.8.
