Kuala lumpur: The ringgit closed the week stronger against the US dollar amid the greenback's continued weakness as the higher-than-expected US Producer Price Index (PPI) for July failed to provide lasting support for the currency. At 6 pm, the local note rose marginally to 4.2085/2155 from Thursday's close of 4.2090/2145.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the ringgit traded within a narrow range today - between RM4.2162 and RM4.2225 - while the US Dollar Index slipped 0.36 percent to 97.900 points. The hotter-than-expected PPI failed to lift the US dollar on a sustained basis, he added.

Dr Mohd Afzanizam highlighted that Malaysia's gross domestic product print held at 4.4 percent in the second quarter of 2025, with domestic demand remaining the primary driver. However, the contraction in net exports suggests that the downside to overall growth mostly emanated from the external sector. He expressed concerns that the downside risks to growth have become elevated due to uncertainties over external development.

At the close, the ringgit settled mostly higher against major currencies. It strengthened versus the Japanese yen to 2.8653/8702 from Thursday's close of 2.8703/8742 and gained against the British pound to 5.7050/7145 from 5.7146/7220, but eased vis-a-vis the euro to 4.9185/9267 from 4.9170/9234.

The ringgit also traded higher against regional peers. It appreciated versus the Singapore dollar to 3.2820/2877 from 3.2849/2895 at yesterday's close and rose against the Thai baht to 12.9760/13.0032 from 13.0004/0238. The local currency also firmed against the Philippine peso to 7.37/7.39 from 7.39/7.41 previously and increased against the Indonesian rupiah to 260.2/260.8 from 261.1/261.6.