Kuala lumpur: The ringgit opened higher against most major currencies but remained unchanged against the US dollar on Friday, as investors showed caution in anticipation of Malaysia's advance estimate for the second quarter (2Q) gross domestic product (GDP), an analyst indicated. At 8 am, the local currency was trading at 4.0710/0780 against the US dollar.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that the market's attention is centered on Malaysia's 2Q 2026 GDP growth advance estimate, with a consensus forecast pegged at 5.3 percent. Dr. Mohd Afzanizam projects the GDP estimate for 2Q 2026 to reach 5.1 percent, citing resilient external demand, particularly from stronger exports related to the electrical and electronics sector, as a supporting factor. He suggested that GDP growth above 5 percent is a commendable performance for Malaysia's economy, especially when driven by investment activities, which should have a positive impact on the ringgit.
In parallel, Mohd Afzanizam remarked on the rise of the US Dollar Index (DXY) by 0.28 percent to 100.763 points, as some officials from the US Federal Reserve continue to advocate for higher interest rates to reduce the inflation rate towards the two percent target. Consequently, the ringgit is expected to fluctuate between RM4.06 and RM4.08, with market sentiment revolving around the Fed's interest-rate decisions.
At the market's opening, the ringgit showed strength against the British pound, rising to 5.4865/4959 from 5.4987/5034 at Thursday's closure. It also increased against the euro to 4.6593/6673 from 4.6678/6718 previously and edged higher against the Japanese yen at 2.5068/5112 compared to 2.5102/5125 the day before. Additionally, the ringgit appreciated against the Singapore dollar to 3.1551/1610 from 3.1583/1612 at Thursday's close and gained against the Thai baht to 12.1161/1430 from 12.1247/1399 previously.
However, the local currency showed minimal change against the Indonesian rupiah at 226.3/226.8 from 226.3/226.6 at Thursday's close and remained steady against the Philippine peso at 6.60/6.62 compared to 6.60/6.61 previously.