Ringgit Opens Higher Amid Resilient US Economy

The Malaysian ringgit opened slightly higher against the US dollar on August 27, thanks to mild buying interest following recent gains. However, a stronger greenback capped further upside in the currency's value.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid attributed the ringgit's performance to the release of US economic indicators, which suggested that the economy remains resilient in the third quarter of 2026. The data showed a 0.4% month-on-month increase in personal income, a 0.2% rise in personal spending, and a 1.1% climb in durable goods orders.

The personal consumption expenditures (PCE) inflation rate, which is the Federal Reserve's preferred inflation gauge, rose by 3.7% year-on-year in July. This caused the US Dollar Index (DXY) to rally, hovering around 99.165 points, 0.25% higher than its previous close.

The ringgit traded stronger against major currencies such as the Japanese yen, British pound, and euro. It also edged up against regional currencies like the Singapore dollar and strengthened against the Thai baht. The local currency remained unchanged against the Indonesian rupiah and Philippine peso.