Ringgit Surges on Strong GDP Data Amid Geopolitical Risk Uncertainty

The Malaysian ringgit opened higher against the US dollar on Monday, following the release of stronger-than-expected second quarter 2026 (Q2 2026) gross domestic product (GDP) growth data. The local currency strengthened to 4.0830/0890 against the greenback from Friday's close of 4.0840/0885.

According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam, the Malaysian economy has remained resilient and continues to surprise on the upside. He noted that traders and investors are uncertain about how geopolitical risk will impact crude oil prices and subsequently inflation, which will be influenced by the US Federal Reserve's (Fed) monetary policy decision in its next Federal Open Market Committee meeting on September 15-16, 2026.