Ringgit Ends Week Higher Against US Dollar Despite Fed Rate Fears

The ringgit ended the week on a positive note against the US dollar due to weaker-than-expected US economic data. However, expectations of a Federal Reserve interest rate hike in September continued to support the greenback's value.

According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the US GDP growth came in below expectations at 1.5% in Q2 2026, while the Personal Consumption Expenditures (PCE) price index moderated to 3.7% in June from 4.1% in May.

The ringgit appreciated to 4.0835/0875 against the US dollar by Friday's close, but still traded lower against other major currencies such as the Japanese yen, euro, British pound, Thai baht, Indonesian rupiah, Philippine peso, and Singapore dollar.