Ringgit Surges Ahead of Malaysia's Q2 GDP Data Release

The ringgit rose against the US dollar on Wednesday morning as markets anticipate the release of Malaysia's second-quarter (2Q) GDP data. According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, the economy could expand by 5.8 per cent in the 2Q due to strong domestic performance.

The ringgit opened at 4.0895/0950 against the greenback from yesterday's close of 4.0905/0940. Dr Afzanizam noted that the Malaysian economy has remained resilient, which could provide further support for the currency.

However, traders and investors are waiting for US consumer price index (CPI) data, which is expected to be released tonight. The consensus estimate suggests a slight moderation in inflation from 3.5 per cent in June to 3.4 per cent this month.

The ringgit was mostly lower against a basket of major currencies at the opening, except for its strength against the Japanese yen. It traded mixed against regional currencies and decreased against the Singapore dollar and Thai baht.