On a Friday morning in Kuala Lumpur, the ringgit held its ground against the US dollar at 4.0710/0780 while quietly firming against sterling, the euro, and the yen, as currency traders paused before Malaysia's first estimate of second-quarter economic growth. It is a small moment in the long ordinary rhythm of trade and money, where a nation's expectations are weighed against figures not yet written. Analysts such as Dr Mohd Afzanizam Abdul Rashid of Bank Muamalat expect growth near 5 per cent, carried by electronics exports, while the wider pull of American interest-rate policy keeps the curr
Ringgit Opens Higher Against Most Majors but Holds Flat Against US Dollar Ahead of GDP Data
A pause against the greenback, with a growth number due the same day
Mark
The ringgit was flat against the dollar but up against nearly everything else. Why does that matter?
Mimi
It shows two forces at work. Against the pound, euro and yen it made small gains, but the dollar is the one everyone watches, and there it held at 4.0710/0780.
Mark
And the reason for holding still?
Mimi
Caution. Investors were waiting for the advance second-quarter GDP estimate, due the same day.
Luke
Worth noting that the caution is the analyst's reading of the market. The report quotes one economist, not a survey of traders.
Mark
What are the growth numbers?
Mimi
Consensus is 5.3 per cent. Dr Mohd Afzanizam Abdul Rashid at Bank Muamalat projects 5.1 per cent, helped by electrical and electronics exports.
Luke
So his forecast is below consensus, and it is a projection, not a result. We don't know the actual figure from this piece.
Mark
And the dollar side?
Mimi
The Dollar Index rose 0.28 per cent to 100.763, with some Fed officials favouring higher rates to pull inflation toward two per cent.
Luke
Again, that is his description of Fed sentiment. And the RM4.06 to RM4.08 range is his expectation, not a guarantee.
Mimi
Fair. The moves against the other currencies are small, a few hundredths or thousandths, but they are all in the quoted data.
Der Puls
- The ringgit sat unmoved against the dollar at 4.0710/0780, holding its breath as the market waited on a single number.
- Consensus expects growth of 5.3 per cent, while one chief economist sees a more modest 5.1 per cent, leaving room for surprise either way.
- Electrical and electronics exports are doing the heavy lifting, and a strong print could lend the ringgit fresh support from home.
- The dollar index climbed 0.28 per cent to 100.763 as some Federal Reserve officials press for higher rates, pinning the ringgit between RM4.06 and RM4.08.
On a Friday morning in Kuala Lumpur, the ringgit held its ground against the US dollar at 4.0710/0780 while quietly firming against sterling, the euro, and the yen, as currency traders paused before Malaysia's first estimate of second-quarter economic growth. It is a small moment in the long ordinary rhythm of trade and money, where a nation's expectations are weighed against figures not yet written. Analysts such as Dr Mohd Afzanizam Abdul Rashid of Bank Muamalat expect growth near 5 per cent, carried by electronics exports, while the wider pull of American interest-rate policy keeps the currency circling a narrow band.
At 8 am in Kuala Lumpur, the ringgit was quoted at 4.0710/0780 against the US dollar, unchanged on the opening bell. Against most other major currencies it had edged higher. The pause came ahead of a release due that same day: Malaysia's advance estimate of second-quarter 2026 gross domestic product.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, told Bernama that investors were staying cautious. The consensus sits at 5.3 per cent growth. His own projection is a little lower, at 5.1 per cent, reflecting resilient external demand, especially stronger electrical and electronics exports. Growth above 5 per cent, he said, would be a solid result, particularly if investment is the driver, and would give the ringgit positive support.
The dollar remained the other pressure point. The US Dollar Index rose 0.28 per cent to 100.763 as some Federal Reserve officials continue to favour higher rates to bring inflation toward two per cent. With sentiment circling that decision, he expects the ringgit to stay between RM4.06 and RM4.08.
The gains against other currencies were small but broad, with the ringgit firmer against the pound, euro, yen, Singapore dollar and Thai baht, and little changed against the rupiah and peso.
The morning set up a simple test. A GDP figure near or above consensus, or even at Mohd Afzanizam's 5.1 per cent, would strengthen the case for a steadier ringgit. Moving beyond the current band, however, will depend more on what the Fed does.
At 8 am on Friday in Kuala Lumpur, the ringgit was quoted at 4.0710/0780 against the US dollar, unchanged on the opening bell. Against most other major currencies it had edged higher. The pause against the greenback came with a data release due the same day: Malaysia's advance estimate of gross domestic product growth for the second quarter of 2026.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, told Bernama that investors were staying cautious ahead of the figure. The consensus forecast is for growth of 5.3 per cent. His own projection is slightly lower, at 5.1 per cent, which he attributed to resilient external demand, in particular stronger exports in the electrical and electronics sector.
He described growth above 5 per cent as a solid result for the Malaysian economy, especially when investment activity is the driver. In his view, a number in that range should give the ringgit positive support.
The other pressure point is the dollar. Mohd Afzanizam said the US Dollar Index rose 0.28 per cent to 100.763 points, as some US Federal Reserve officials continue to back higher interest rates in order to bring inflation down toward the two per cent target. Because sentiment keeps circling the Fed's rate decision, he expects the ringgit to stay in a range of RM4.06 to RM4.08 against the dollar.
The gains elsewhere were small but broad. Against the British pound, the ringgit strengthened to 5.4865/4959 from 5.4987/5034 at Thursday's close. Against the euro it rose to 4.6593/6673 from 4.6678/6718. Against the Japanese yen it edged up to 2.5068/5112, compared with 2.5102/5125 the day before.
Among regional currencies, the ringgit appreciated against the Singapore dollar to 3.1551/1610 from 3.1583/1612, and gained on the Thai baht at 12.1161/1430 against 12.1247/1399 previously. It was little changed against the Indonesian rupiah at 226.3/226.8, versus 226.3/226.6 at Thursday's close, and against the Philippine peso at 6.60/6.62, compared with 6.60/6.61.
So the morning set up a simple test. If the GDP print lands near or above the 5.3 per cent consensus, or even at the 5.1 per cent Mohd Afzanizam projects, the case for a steadier ringgit gets support from the domestic side. Whether it can move out of the RM4.06 to RM4.08 band will depend more on what comes from the Fed.
Bemerkenswerte Zitate
GDP growth of above 5 per cent is considered a solid performance for the Malaysian economy, particularly when driven by investment activity.— Dr Mohd Afzanizam Abdul Rashid, chief economist, Bank Muamalat Malaysia Bhd
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