Ringgit Strengthens Against US Dollar Following Robust 3Q GDP Estimate

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Oct 16 (Bernama) -- The ringgit closed higher against the US dollar on Friday, supported by Malaysia’s higher-than-expected advance GDP estimate for the third quarter of 2026 (3Q 2026).

At 6 pm, the ringgit rose to 4.0795/0835 against the greenback from Thursday’s close of 4.0800/0835.

Earlier today, the Department of Statistics Malaysia (DOSM), in its Advance GDP Estimates for 3Q 2026 report, said the economy expanded by 5.3 per cent in the third quarter, after registering 6.0 per cent growth in the preceding quarter.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam told Bernama that the latest announcement suggests that the Malaysian economy remains fairly resilient.

“It would not be a surprise if the whole-year GDP comes in higher than the current projection of 4.8 per cent to 5.3 per cent, with the nine months of 2026 (9M 2026) GDP growth already at 5.5 per cent.

“We sense that the anticipation for a normalisation in Overnight Policy Rate (from the pre-emptive cut in July 2025) would gather pace in light of the current growth trajectory,” he said.

At the close, the ringgit traded mostly lower against a basket of major currencies.

It increased against the Japanese yen to 2.5831/5895 from 2.5869/5892 at Thursday’s close but decreased against the euro to 4.5911/5956from 4.5761/5801 and inched down against the British pound to 5.4396/4449 from 5.4101/4147.

Against its ASEAN peers, the local note gained against the Indonesian rupiah to 226.3/226.6 from 227.4/227.7 and edged down against the Philippine peso at 6.48/6.49 from 6.47/6.48.

It was lower against the Singapore dollar to 3.1889/1922 from 3.1818/1848 at yesterday’s close and decreased against the Thai baht to 12.2101/2268 from 12.1758/1914.

-- BERNAMA