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MARKET • 31/07/2026 09:28 AM

Ringgit Opens Higher As Weaker US Data Weighs On Dollar

By Karina Imran & Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, July 31 (Bernama) -- The ringgit opened higher against the US dollar on Friday as the greenback weakened following softer United States (US) economic data, an analyst said.

At 8 am, the local currency strengthened to 4.0800/0885 against the greenback from Thursday's close of 4.0875/0930.

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Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell 1.01 per cent to 99.864 as the latest economic data pointed to slower growth in the US economy in the second quarter of 2026.

He said US gross domestic product (GDP) expanded 1.5 per cent in the second quarter, below the consensus forecast of 2.1 per cent.

The US Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures (PCE) Price Index, eased to 3.7 per cent in June from 4.1 per cent in May.

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"Such an outturn supports the Fed's decision to keep its benchmark interest rate unchanged in the near term, as growth has slowed while inflation has moderated, suggesting the current monetary policy stance remains appropriate," he told Bernama.

He added that average US petrol prices fell to US$4.39 per gallon in July from US$4.54 in June, indicating inflation could ease further.

"Hence, the prospect of a rate hike at the September meeting could mean the US dollar loses momentum, which explains why the DXY is currently hovering below the 100-point mark.

"As such, the ringgit is expected to remain supported today and trade between RM4.07 and RM4.08," he added.

The ringgit traded lower against a basket of major currencies at the opening.

It weakened against the Japanese yen to 2.5465/5520 from 2.5029/5064 at Thursday's close, eased versus the euro to 4.7014/7112 from 4.6863/6926 and fell against the British pound to 5.4917/5031 from 5.4691/4764.

Against regional currencies, the ringgit traded mixed.

It strengthened against the Indonesian rupiah to 225.2/225.8 from 225.7/226.0 and appreciated versus the Philippine peso to 6.62/6.64 from 6.64/6.65.

However, it weakened against the Singapore dollar to 3.1820/1892 from 3.1701/1746 and eased versus the Thai baht to 12.2225/2546 from 12.1637/1852.

-- BERNAMA

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