Ringgit Gains as Weaker US Data Weighs on Dollar
The Malaysian ringgit ended the week on a positive note against the US dollar due to weaker-than-expected US economic data. According to Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid, despite the underwhelming figures, expectations of a Federal Reserve interest rate hike in September remained intact.
The second-quarter 2026 gross domestic product (GDP) growth came in below estimates at 1.5% compared to the consensus estimate of 2.1%. The Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, also moderated to 3.7% in June from 4.1% in May.
The ringgit appreciated against the greenback, trading at 4.0835/4.0875 versus the US dollar from yesterday's close of 4.0875/4.0930. However, it traded lower against a basket of major currencies, depreciating against the Japanese yen, euro, British pound, Thai baht, Indonesian rupiah, Philippine peso, and Singapore dollar.