KUALA LUMPUR: The ringgit opened higher against the US dollar for a 10th straight session this morning, extending its gains ahead of Malaysia’s third-quarter (3Q) 2025 gross domestic product (GDP) data, due this afternoon, an analyst said.
At 8 am, the ringgit strengthened to 4.1205/1335 against the US dollar, compared with Thursday’s close of 4.1260/1300.
The local currency moved over its 13-month high, last reached on Sept 30, 2024, when it closed at 4.1210.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said Bank Negara Malaysia’s 3Q economic report would serve as a key domestic catalyst.
"A constructive set of macro indicators consistent with our expectation of 5.2 per cent should reinforce market sentiment and strengthen confidence in Malaysia’s near-term economic trajectory,” he told Bernama.
He said the ringgit’s firmer opening also mirrored a sharp decline in the US dollar index, which traded lower throughout the overnight session and closed near the 99 handle, down roughly 0.5 per cent.
"The market’s reaction suggests that, despite the resolution of the protracted US government shutdown, investors remain cautious ahead of forthcoming data releases and their potential bearing on the US Federal Reserve’s (Fed) December policy meeting.
"While some datasets may face delays or gaps, any figures that do emerge are likely to carry significant weight unless they land precisely in line with consensus,” he said.
Mohd Sedek said expectations of a December rate cut by the Fed had eased, creating a broadly supportive external backdrop for Asian currencies.
He said the ringgit could gain further and, in the near term, might challenge the 4.10 USD/MYR level, from its current rate of around 4.12.
At the opening, the ringgit was higher against a basket of major currencies.
It gained against the yen to 2.6649/6735 from 2.6700/6728 at Thursday’s close, rose against the British pound to 5.4197/4368 from 5.4282/4334, and increased against the euro to 4.7921/8073 from 4.7928/7974.
The ringgit was also higher against ASEAN currencies.
It strengthened against the Indonesian rupiah to 246.3/247.2 from 246.6/247.0, and rose against the Philippine peso to 6.98/7.01 from 6.99/7.00.
It appreciated against the Thai baht to 12.7278/7786 from 12.7724/7903 and climbed against the Singapore dollar to 3.1664/1767 from 3.1729/1762. - Bernama
