The ringgit closed almost unchanged against the US dollar ahead of Malaysia’s 2Q 2026 GDP announcement, with investors adopting a wait-and-see approach.
KUALA LUMPUR: The ringgit closed almost unchanged against the US dollar ahead of Malaysia’s gross domestic product (GDP) announcement for the second quarter tomorrow, as investors adopted a wait-and-see approach after US inflation data came in within expectations, supporting the greenback.
At 6 pm, the ringgit easedto4.0850/0890 versus the US dollar from Wednesday’s close of 4.0835/0875.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the market was taking a wait-and-see approach ahead of tomorrow’s announcements by Bank Negara Malaysia and the Department of Statistics Malaysia on the country’s economic performance.
“Malaysia’s advance GDP estimate for second quarter 2026 (2Q 2026) expanded by 5.8 per cent year-on-year (y-o-y), accelerating from 1Q 2026, which stood at 5.4 per cent.
“It is highly likely that the numbers willbe met, or perhaps surpass expectations, based on indicators such asthe Industrial Production Index (IPI) andMalaysia’s services activity,” he told Bernama.
Malaysia’sIPIrose by 6.5 per cent y-o-yin June 2026, continuingthe positive momentum acrossall sectors, whileMalaysia’s services activity, as measured by the sector’s volume index, rose 5.9 per cent y-o-yin the 2Q, driven by stronger wholesale and retail trade, food and beverageand accommodation activities, DOSM reported previously.
On the US dollar’s performance, Mohd Afzanizam said the slight moderation in the US inflation rate to 3.4 per cent suggested that a rate hike decision at the Federal Open Market Committee’s September meeting was not a done deal.
“The US CPI index released yesterday pointed to the possibility of maintaining the interest rate in the September meeting instead of raising it further. Hence, it is about the interest rate differential between the US rate and the overnight policy rateand which one is more attractive to investors,” he added.
Meanwhile, at the close, the local currency ended mostly higher against a basket of major currencies.
It climbedagainst the Japanese yen to2.5634/5660 from 2.5655/5682 at Wednesday’s close and improved vis-à-vis the British pound to 5.5119/5173 from 5.5180/5234 previously.
But it fell against the euro to4.7120/7167 from 4.7107/7153.
The local note was traded mixedagainst regional currencies.
It was marginally higher against the Philippine peso to6.66/6.67 from 6.67/6.68 and edged up against the Thai baht to12.3239/3412 from 12.3488/3665.
Againstthe Indonesian rupiah, it was unchanged at 228.4/228.8 from 228.4/228.7 registered at yesterday’s close, while against the Singapore dollar, the local note declined to3.1912/1945 from 3.1905/1941 on Wednesday.
