Kuala lumpur: The ringgit closed higher against the US dollar, following the stronger-than-expected gross domestic product (GDP) announcement last Friday, an economist said. At 6 pm, the ringgit rose to 3.8945/9055 versus the greenback from Friday's close of 3.9060/9115.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid stated that the current official GDP forecast of 4.0-4.5 percent for 2026 is likely to be revised upward. This revision is supported by the country's resilient economy amidst external uncertainties. Dr Mohd Afzanizam noted that this situation suggests the overnight policy rate (OPR) would remain steady in 2026, as there is no urgency to overstimulate the economy.
Meanwhile, he mentioned that the United States (US) consumer price index inflation continues to moderate in January. This trend has renewed expectations that the US Federal Reserve will resume its monetary easing in the second half of 2026 (2H 2026). He explained that this development essentially reduces the interest rate gap between the OPR and Federal Funds Rate.
According to Mohd Afzanizam, the prevailing support level stands at RM3.8722. A break below this level would open the way to the next support level of RM3.6519. At the close, the ringgit traded higher against a basket of major currencies.
The ringgit appreciated versus the Japanese yen to 2.5356/5430 from 2.5435/5474 at last Friday's close, strengthened against the euro to 4.6204/6335 from 4.6325/6390 last week, and rose vis- -vis the British pound to 5.3137/3287 from 5.3211/3286 previously.
The local note also traded higher against its ASEAN peers. It improved versus the Singapore dollar to 3.0860/0949 from 3.0904/0950 last Friday, was higher versus the Thai baht at 12.5205/5619 from 12.5607/5849, edged up against the Indonesian rupiah to 231.4//232.2 from 231.9/232.4 at last Friday's close, and was firmer against the Philippine peso at 6.71/6.74 from 6.73/6.74 previously.
Additionally, Bursa Malaysia Bhd and its subsidiaries will be closed on Feb 17, 2026 (Tuesday) and Feb 18, 2026 (Wednesday) in conjunction with the Chinese New Year public holiday, and will resume operations on Feb 19, 2026 (Thursday).