Ringgit To Trade Around RM4.07-4.08 With Upside Bias Next Week, Supported By Stronger 2Q GDP
By Harizah Hanim Mohamed
KUALA LUMPUR, Aug 15 (Bernama) -- The ringgit is expected to trade around RM4.07 to RM4.08 with an upside bias next week, on sentiment brought about by Malaysia’s gross domestic product (GDP) announcement on Friday.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Malaysia’s GDP which grew six per cent in the second quarter of 2026 (2Q 2026), coupled with an upcycle in the technology sector and higher commodity prices, would continue to drive growth momentum and support the ringgit.
“Malaysia’s GDP grew higher than expected at six per cent in 2Q 2026, surpassing the consensus estimates of 5.8 per cent, suggesting that the Malaysian economy remained resilient despite having to contend with the heightened economic uncertainties from abroad.
“This should bode well for the ringgit next week as the second half of this year is expected to be fairly stable and resilient, due to supportive policies from the monetary authorities and the fiscal policy,” he told Bernama.
Earlier today, Bank Negara Malaysia (BNM) said the growth was driven by continued domestic demand and robust exports.
“Household spending was supported by steady income growth and ongoing policy support, while investment growth was underpinned by continued spending on structures and machinery and equipment,” the central bank said in a statement today.
Malaysia’s 2Q performance exceeded the 5.4 per cent growth registered in 1Q.
BNM said on the external front, export growth accelerated, driven mainly by continued strength in electrical and electronics (E&E) products and sustained expansion in services, as well as a rebound in exports of liquefied natural gas (LNG) and non-E&E manufacturing products.
On a Friday-to-Friday basis, the ringgit rose against the US dollar to 4.0840/0885 from 4.0885/0930 a week earlier.
The local currency traded mostly lower against most major currencies during the week.
It depreciated against the British pound to 5.5232/5293 from 5.4949/5010 previously and slipped vis-a-vis the euro to 4.7182/7234 from 4.7132/7184, but strengthened against the Japanese yen to 2.5660/5690 from 2.5813/5843.
The ringgit traded mixed against ASEAN currencies.
The local note improved against the Philippine peso to 6.64/6.66 from 6.71/6.72 a week earlier and edged higher against the Thai baht to 12.3153/3333 from 12.3665/3843.
It, however, slid against the Singapore dollar to 3.1924/1964 from 3.1911/1949 and decreased against the Indonesian rupiah to 229.0/229.4 from 228.4/228.7 a week previously.
-- BERNAMA