Kuala lumpur: The ringgit has continued to strengthen against the US dollar, other major currencies, and ASEAN peers, demonstrating resilience despite stronger-than-expected United States economic data. At 6 pm, the local note appreciated to 4.0860/0910 against the greenback from 4.1160/1200 at Thursday's close.

According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes highlighted that the latest US economic data unveiled a more uneven picture beneath the headline figures. Growth appeared to be driven primarily by capital expenditure and government spending, while consumer spending saw a sharp decline. Innes noted that this situation prompted investors to reassess aggressive US Federal Reserve interest rate hike expectations, resulting in lower US yields and reducing pressure on Asian currencies, including the ringgit.

Reports indicate that the US reported a better-than-expected gross domestic product (GDP) growth of 2.1 percent in the first quarter of 2026, surpassing the consensus forecast of 1.6 percent. Additionally, the US personal consumption expenditures (PCE) inflation rate matched market expectations, standing at 4.1 percent in May.

Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, expressed concerns over the final estimate of US 1Q 2026 GDP, which revealed underlying weaknesses in the US economy. He pointed out that consumer spending, a primary growth driver, rose by only 0.5 percent, suggesting that the inflationary pressures were mainly due to higher fuel costs. Dr. Mohd Afzanizam asserted that raising interest rates may not be effective in curbing inflation under these circumstances.

By the end of trading, the ringgit had strengthened against a basket of major currencies. It appreciated against the British pound, euro, and Japanese yen, showcasing its robust performance. The local note also showed firm gains against regional currencies such as the Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.