Ringgit Slips Against US Dollar Amid Stronger-than-Expected US Economic Data

The ringgit opened lower against the US dollar on Thursday due to stronger-than-expected US economic data. The greenback was boosted by a higher than expected GDP growth rate of 2.2% for the second quarter of 2026, above the consensus estimate of 1.5%. This supported the US Dollar Index (DXY), which initially fell to as low as 101.05 points before recovering to 101.37.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the odds of a rate hike in October have fallen from more than 70% to below 50%. The ADP employment change also rose to 90,000 in September, ahead of the market estimate of 73,000.

The ringgit rose against the euro, pound, and yen, but was little changed against the Indonesian rupiah. It is expected to trade between RM4.08 and RM4.09 today, ahead of the release of US non-farm payrolls (NFP) data on Friday.