KUALA LUMPUR, Aug 14 — The ringgit opened higher against major and ASEAN currencies ahead of the release of Malaysia’s gross domestic product (GDP) data for the second quarter of 2026 today, an economist said.
At 8 am, the local currency strengthened to 4.0835/0895 against the US dollar from yesterday’s close of 4.0850/0890.
The consensus estimate is for Malaysia’s second-quarter GDP to grow by 5.8 to 5.9 per cent, underpinned by stronger performances 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 Mohd Afzanizam Abdul Rashid told Bernama.
He also noted that the US Dollar Index (DXY) slipped 0.05 per cent to 99.960 points following a softer US producer price index (PPI), reducing the likelihood of a rate hike in September.
He said the PPI for July came in at 4.7 per cent, compared with 5.0 per cent previously, while core PPI also moderated to 4.2 per cent from 4.7 per cent.
“Weak US jobs data and moderate inflation suggest the Federal Reserve (Fed) would be inclined to keep the federal funds rate steady when Federal Open Market Committee (FOMC) members reconvene for their September 15-17, 2026 meeting.
“As such, this could be positive for the ringgit as the interest rate differential would remain unchanged,” he said.
Meanwhile, the local currency was higher against a basket of major currencies at today’s opening.
It strengthened against the Japanese yen to 2.5608/5648 from 2.5634/5660 at yesterday’s close and improved against the British pound to 5.5086/5167 from 5.5119/5173 previously.
However, it weakened against the euro to 4.7099/7168 from 4.7120/7167.
The ringgit traded mixed against regional currencies.
It was marginally higher against the Singapore dollar at 3.1895/1944 from 3.1912/1945 and strengthened against the Thai baht to 12.3086/3326 from 12.3239/3412 at yesterday’s close.
The local currency was little changed against the Philippine peso at 6.65/6.67 from 6.66/6.67 and was flat against the Indonesian rupiah at 228.4/228.8.
