Ringgit Edges Up Against Greenback on Weaker US Data
The Ringgit ended the week marginally higher against the US dollar due to weaker-than-expected US economic data. Despite this, expectations of a September interest rate hike by the Federal Reserve remained intact.
According to Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid, the US's second-quarter 2026 GDP growth came in below expectations at 1.5% compared to the consensus estimate of 2.1%. The Personal Consumption Expenditures price index, the Fed's preferred inflation gauge, moderated to 3.7% in June from 4.1% in May.
The Ringgit appreciated to 4.0835/0875 against the greenback by Thursday's close, but still traded lower against a basket of major currencies at the end of the week. It eased versus the Japanese yen and depreciated vis-a-vis the euro and British pound, as well as several regional currencies.