The Malaysian ringgit started trading stronger against the US dollar on Monday, bolstered by positive sentiment following the release of better-than-expected economic data.
At the opening of trade, the ringgit was quoted at RM3.8970/9190 against the US dollar, compared with RM3.9060/9155 at the close of last Friday’s session.
📈 Economic Growth Drives Currency Strength
Analysts say the firmer opening reflects optimism over Malaysia’s fourth-quarter 2025 gross domestic product (GDP) growth, which came in stronger than anticipated. This momentum has supported demand for the local currency.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid highlighted that the current official 2026 GDP growth forecast of 4.0 %–4.5 % may be revised upwards given the resilient economic performance amid global uncertainties.
💹 Interest Rate Outlook and Policy Impact
Despite strong domestic performance, Dr Mohd Afzanizam noted there are no immediate pressures for Malaysia’s central bank to adjust the Overnight Policy Rate (OPR) in 2026. The anticipated easing of US monetary policy could narrow the interest rate gap between Malaysia and the United States, potentially supporting further ringgit gains against the greenback.
📊 Ringgit Performance Against Other Currencies
Aside from the US dollar, the ringgit also showed mixed movement against other major currencies at opening:
- It appreciated against the euro and British pound, marking improved trading positions.
- However, it weakened against the Japanese yen as investors adjusted positions.
🔍 Market Outlook
Market watchers remain cautiously optimistic, noting that continued economic resilience and supportive policy expectations could sustain ringgit strength in the near term. However, external factors — including global monetary developments — will continue to influence performance.