The ringgit closed marginally higher at 4.0835/0875 against the US dollar after weaker-than-expected US GDP and inflation data this week.
KUALA LUMPUR: The ringgit ended the week marginally higher against the US dollar following weaker-than-expected US economic dataalthough sentiment towards the greenback remained firm,as expectations of a Federal Reserve (Fed) interest rate hike in September stayed intact.
At 6 pm, the local currency appreciated to 4.0835/0875 versusthe greenback from Thursday’s close of 4.0875/0930.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said expectations of a September interest rate hike by the Fed stayed intact despite weaker US economic data, helping to limit the US dollar’s losses.
“The United States’ second-quarter 2026 gross domestic product (GDP) growth came in below expectations at 1.5 per centcompared with the consensus estimate of 2.1 per cent.
“Meanwhile, the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, moderated to 3.7 per cent in June from 4.1 per cent in May,” he told Bernama.
The ringgit traded lower against a basket of major currencies at the close.
It eased versusthe Japanese yen to 2.5520/5548 from 2.5029/5064 at Thursday’s close, depreciated vis-à-vis the euro to 4.6981/7027 from 4.6863/6926 yesterday and declined versus the British pound to 5.4923/4977 from 5.4691/4764 previously.
The ringgit also traded lower against regional currencies.
It weakened versus the Thai baht to 12.2264/2435 from 12.1637/1852 at yesterday’s close, declined against the Indonesian rupiah to 226.6/226.8 from 225.7/226.0 previously, depreciated vis-à-vis the Philippine peso to 6.66/6.67 from 6.64/6.65, andslipped against the Singapore dollar to 3.1823/1856 from 3.1701/1746.
