Ringgit Edges Down Against US Dollar Amid Strong US Economic Data
The Malaysian ringgit opened higher against major currencies on Thursday but slightly lower against the US dollar due to strong US economic data. The data showed that US final gross domestic product growth for the second quarter of 2026 came in at 2.2%, above the consensus estimate of 1.5%. This led to a reassessment of the odds of a rate hike in October, which fell from more than 70% to below 50%.
Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, said that the US Dollar Index (DXY) initially fell to as low as 101.05 points before recovering to 101.37. He also noted that the ringgit is expected to trade between RM4.08 and RM4.09 today ahead of the release of US non-farm payrolls data on Friday.
Against major currencies, the ringgit rose against the euro, appreciated against the British pound, and strengthened against the Japanese yen. It also strengthened against the Singapore dollar, Thai baht, and was little changed against the Indonesian rupiah and Philippine peso.