Ringgit opens firmer against US dollar as economic data supports outlook
Bank Muamalat’s chief economist said export and GDP growth had increased expectations of possible OPR normalisation.
The ringgit began trading on Oct 21 at 4.0795/0850 against the US dollar at 8 am, improving from the previous close of 4.0805/0845 as domestic economic figures supported the currency.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Malaysia’s export performance and gross domestic product (GDP) growth had increased the likelihood of possible normalisation of the Overnight Policy Rate (OPR).
He cited September export growth of 54.5 per cent and a 5.3 per cent GDP expansion in the third quarter of 2026, which exceeded consensus forecasts. He also attributed additional support for the ringgit to reduced expectations of a US rate increase at the Federal Reserve’s October meeting. The US Dollar Index (DXY) declined 0.27 per cent to 101.707 points.
Against other major currencies, the ringgit’s opening performance was mostly weaker. The yen rate improved to 2.5772/5809, compared with 2.5803/5830 previously. However, the pound rate weakened to 5.4551/4625 from 5.4475/4528, while the euro rate slipped to 4.5796/5858 from 4.5771/5816.
Trading against ASEAN currencies was mixed. The ringgit strengthened marginally against the Indonesian rupiah, moving to 226.7/227.1 from 226.8/227.1, and the Philippine peso, reaching 6.46/6.48 from 6.47/6.48.
It lost ground against the Thai baht, with the rate at 12.1341/1577 compared with 12.1241/1411 previously. Against the Singapore dollar, it weakened to 3.1918/1964 from 3.1914/1950.
