Ringgit opens little changed as Malaysia awaits third-quarter GDP estimate
Bank Muamalat’s chief economist forecast growth of around 5.2 per cent, while US inflation could limit gains in the Malaysian currency.
Malaysia’s ringgit began trading on October 16, 2026, at 4.0800/0845 per US dollar at 8 am, little changed from the previous close of 4.0800/0835. Investors were awaiting Malaysia’s advance GDP estimate for the third quarter.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said continued expectations of tight US monetary policy could constrain the ringgit despite a weaker dollar. The US dollar Index had dropped 0.53 per cent to 102.005 points, a move that would ordinarily support the Malaysian currency.
He told Bernama that September’s US Producer Price Index rose 6.3 per cent, above the consensus forecast of 5.3 per cent. That reading suggested the Federal Reserve could retain its restrictive stance at its policy meeting at the end of October, he said.
For Malaysia, Mohd Afzanizam forecast provisional third-quarter growth of around 5.2 per cent, compared with 6.0 per cent in the second quarter of 2026. He said expectations of overnight policy rate normalisation could support the ringgit, and projected a US dollar trading range of RM4.07 to RM4.09 for October 16.
The ringgit also gained against the yen and euro but weakened against sterling. Its regional performance was mixed: it strengthened against the baht, slipped against the Singapore dollar, was nearly flat against the rupiah and held unchanged against the Philippine peso.
