Ringgit opens mixed as stronger US data lifts greenback, traders eye October rate hike odds

The ringgit opened higher against a basket of major currencies but slightly lower against the US dollar on Thursday. — Picture by Shafwan Zaidon

First Published: Thursday, 01 Oct 2026 9:09 AM MYT

KUALA LUMPUR, Oct 1 — The ringgit opened higher against a basket of major currencies but slightly lower against the US dollar on Thursday, weighed by stronger-than-expected US economic data that supported the greenback.

At 8am, the ringgit edged down to 4.0790/0860 against the US dollar from Wednesday’s close of 4.0785/0820.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said US final gross domestic product growth for the second quarter of 2026 came in at 2.2 per cent, above the consensus estimate of 1.5 per cent.

“The Automatic Data Processing (ADP) employment change also rose to 90,000 in September, ahead of the market estimate of 73,000.

“Following this, the odds of a rate hike in October fell from more than 70 per cent to below 50 per cent currently,” he told Bernama.

Meanwhile, the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) price index, held at 3.4 per cent in August, below the consensus estimate of 3.7 per cent.

Mohd Afzanizam said the US Dollar Index (DXY) initially fell to as low as 101.05 points before recovering to 101.37.

“On that note, markets have reassessed their stance towards a rate hike in October, but it is not totally off the table in light of the positive labour market data,” he said.

He said the ringgit is expected to trade between RM4.08 and RM4.09 today, ahead of the release of US non-farm payrolls (NFP) data on Friday.

Against major currencies, the ringgit rose against the euro to 4.6203/6282 from 4.6324/6363 at Wednesday’s close, appreciated against the British pound to 5.4104/4197 from 5.4162/4209, and strengthened against the Japanese yen to 2.5887/5933 from 2.5969/5993.

Against Asean currencies, the ringgit strengthened against the Singapore dollar to 3.1917/1977 from 3.1943/1973 at Wednesday’s close, rose against the Thai baht to 12.1341/1611 from 12.1521/1666, and was little changed against the Indonesian rupiah at 227.9/228.4 versus 227.9/228.2.

The ringgit was unchanged against the Philippine peso at 6.51/6.52. — Bernama