KUALA LUMPUR, Aug 14 — The ringgit firmed against the United States (US) dollar on Friday as Malaysia’s stronger-than-expected gross domestic product growth (GDP) for the second quarter of the year (2Q 2026) supported the local currency.
Meanwhile, lower inflation prints in the US, as seen in its Consumer Price Index and Producer Price Index, led the US Dollar Index down 0.17 per cent to 99.798 points.
At 6pm, the ringgit traded higher at 4.0840/0885 versus the US dollar, up from Thursday’s close of 4.0850/0890.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said Malaysia’s 2Q 2026 GDP grew higher than expected at 6.0 per cent, surpassing the consensus estimates of 5.8 per cent.
“This suggests that the Malaysian economy remained resilient despite having to contend with the heightened economic uncertainties from abroad,” he told Bernama.
Earlier today, Bank Negara Malaysia (BNM) said the growth was driven by continued domestic demand and robust exports.
“Household spending was supported by steady income growth and ongoing policy support, while investment growth was underpinned by continued spending on structures and machinery and equipment,” it said in a statement today.
Malaysia’s 2Q performance exceeded the 5.4 per cent growth registered in 1Q.
BNM added that on the external front, export growth accelerated, driven mainly by continued strength in electrical and electronics (E&E) products and sustained expansion in services, as well as a rebound in exports of liquefied natural gas and non-E&E manufacturing products.
Meanwhile, the local currency ended lower against a basket of major currencies.
It fell against the Japanese yen to 2.5660/5690 from 2.5634/5660 at Thursday’s close and eased vis-à-vis the British pound to 5.5232/5293 from 5.5119/5173 previously.
It fell against the euro to 4.7182/7234 from 4.7120/7167. The local note traded mixed against regional currencies.
It was marginally higher against the Philippine peso to 6.64/6.66 from 6.66/6.67 and edged up against the Thai baht to 12.3153/3333 from 12.3239/3412.
Against the Indonesian rupiah, it fell to 229.0/229.4 from 228.4/228.8 at yesterday’s close, while against the Singapore dollar, the local note declined to 3.1924/1964 from 3.1912/1945 on Thursday.
