Ringgit edges higher as investors await GDP figures
The currency ended at 4.0800/0835 against the US dollar, while a Bank Muamalat economist projected third-quarter growth of around 5.2 per cent.
Malaysia’s ringgit posted a small gain against the US dollar on Oct 15 ahead of advance gross domestic product estimates for the third quarter of 2026. The exchange rate stood at 4.0800/0835 at 6 pm, versus 4.0805/0850 at the previous close.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, told Bernama that he projected growth of around 5.2 per cent for the quarter, following six per cent in the preceding quarter. Domestic demand and investment were expected to underpin the economy, he said.
He viewed continued growth above trend as supporting further normalisation of the Overnight Policy Rate towards 3.00 per cent, with monetary settings needing to reflect economic strength and changing inflation pressures.
On US markets, Mohd Afzanizam noted that the US Dollar Index had fallen despite September inflation exceeding expectations. The Consumer Price Index reached 3.7 per cent, compared with August’s 3.4 per cent and a market forecast of 3.6 per cent.
He also pointed to a 10 basis points decline in the 10-year US Treasury yield to 5.09 per cent. He linked stronger demand for safe-haven assets to selling in technology shares, particularly companies involved in artificial intelligence. Cautious comments by Federal Reserve officials had also curbed expectations for an imminent rate increase, weighing on the dollar, he said.
