Ringgit opens higher on strong domestic economic data

KUALA LUMPUR: The ringgit opened higher against the US dollar on Wednesday, supported by strong domestic economic data that strengthened expectations of a possible normalisation of the overnight policy rate (OPR).

At 8am, the ringgit strengthened to 4.0795/0850 against the greenback from Tuesday's close of 4.0805/0845.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said robust economic indicators, particularly export growth and gross domestic product (GDP) expansion, provide support for the local currency.

"Strong data points for the Malaysian economy have raised the odds of a possible OPR normalisation. The latest trade data showed exports jumped 54.5 per cent in September, while GDP grew 5.3 per cent in the third quarter of 2026, exceeding consensus forecasts," he said.

Mohd Afzanizam added that easing expectations of a US interest rate hike at the Federal Reserve's October meeting contributed to a 0.27 per cent fall in the US Dollar Index to 101.707 points, further supporting the ringgit.

At the opening, the ringgit traded mostly lower against a basket of major currencies.

It gained versus the Japanese yen to 2.5772/5809 from 2.5803/5830 at Tuesday's close, but fell against the British pound to 5.4551/4625 from 5.4475/4528 and edged down against the euro to 4.5796/5858 from 4.5771/5816.

The ringgit performed mixed against its Asean peers.

It traded marginally higher versus the Indonesian rupiah at 226.7/227.1 from 226.8/227.1, and gained slightly against the Philippine peso to 6.46/6.48 from 6.47/6.48.

The local currency was lower against the Thai baht to 12.1341/1577 from 12.1241/1411 at yesterday's close and depreciated versus the Singapore dollar to 3.1918/1964 from 3.1914/1950.