Ringgit opens higher as weaker US data weighs on dollar
The Malaysian ringgit opened higher against the US dollar due to weaker-than-expected US economic data, including slower GDP growth and moderating inflation in the second quarter of 2026. An analyst noted that this data supports the US Federal Reserve's decision to keep its benchmark interest rate unchanged, causing the US Dollar Index (DXY) to fall below 100 points. The ringgit's performance against other major and regional currencies was mixed.
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This article provides insights into global currency movements and their drivers, which can impact international trade, investment, and the financial stability of countries like Malaysia. It reflects the immediate market reaction to key economic indicators.
KUALA LUMPUR: 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.
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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