Ringgit opens higher against US dollar as Malaysian economic data lends support
An economist linked the currency’s gains to export and GDP growth, alongside reduced expectations of a US interest rate increase.
The ringgit rose against the US dollar in early trading on 21 October, reaching 4.0795/0850 at 8am compared with the previous close of 4.0805/0845. Malaysian economic indicators and a weaker dollar supported the move.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said September exports increased 54.5 per cent, while third-quarter GDP expanded 5.3 per cent in 2026, beating consensus forecasts. He said the figures increased the likelihood of possible normalisation of the Overnight Policy Rate (OPR).
He also attributed 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. Its yen rate improved to 2.5772/5809 from 2.5803/5830, but it slipped to 5.4551/4625 per British pound from 5.4475/4528. Against the euro, it eased to 4.5796/5858 from 4.5771/5816.
Regional trading was mixed. The ringgit strengthened against the rupiah, with the rate at 226.7/227.1 versus 226.8/227.1, and against the Philippine peso at 6.46/6.48 versus 6.47/6.48. It weakened against the baht to 12.1341/1577 from 12.1241/1411 and against the Singapore dollar to 3.1918/1964 from 3.1914/1950.
