Ringgit starts flat as US rate outlook offsets dollar weakness
A Bank Muamalat economist expects trading between RM4.07 and RM4.09, with Malaysia’s advance GDP estimate also in focus.
The ringgit began trading on Oct 16 almost unchanged against the US dollar, quoted at 4.0800/0845 at 8 am versus the previous closing rate of 4.0800/0835. Expectations that US monetary policy would remain restrictive limited the benefit from a weaker dollar.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said persistent inflation in the United States could curb ringgit gains. September’s US Producer Price Index rose 6.3 per cent against a consensus forecast of 5.3 per cent, which he said could prompt the Federal Reserve to keep its restrictive stance at the month-end Federal Open Market Committee meeting.
The US dollar Index (DXY) lost 0.53 per cent to reach 102.005 points, while Brent crude eased to around US$105 per barrel, he said. Although a falling DXY would usually favour the ringgit, the US inflation outlook remained a constraint.
In Malaysia, investors were awaiting the advance GDP estimate for third quarter (3Q) 2026. Mohd Afzanizam said provisional growth could come in at around 5.2 per cent, following 6.0 per cent in 2Q 2026. He expected the prospect of overnight policy rate normalisation to underpin the ringgit.
Among major currencies, the ringgit rose against the yen, reaching 2.5797/5827 versus 2.5869/5892 previously. It also gained against the euro to 4.5741/5791 from 4.5761/5801, but slipped against the pound to 4.4138/4197 from 4.4101/4147.
