Kuala lumpur: The ringgit opened higher against the US dollar for a 10th consecutive session this morning, extending its upward trajectory as investors await the release of Malaysia's third-quarter (3Q) 2025 gross domestic product (GDP) data, which is due later today, an analyst noted. At 8 am, the ringgit strengthened to 4.1205/1335 against the US dollar, compared with Thursday's close of 4.1260/1300, surpassing its 13-month high last reached on Sept 30, 2024, when it closed at 4.1210.
According to BERNAMA News Agency, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan highlighted that Bank Negara Malaysia's 3Q economic report is expected to be a significant 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 stated.
Mohd Sedek also indicated that the ringgit's firmer opening reflects a notable decline in the US dollar index, which traded lower throughout the overnight session, closing 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 impact on the US Federal Reserve's (Fed) December policy meeting," he added.
He further explained that expectations of a December rate cut by the Fed had eased, creating a supportive external environment for Asian currencies. Mohd Sedek predicted that the ringgit could potentially gain further and might challenge the 4.10 USD/MYR level in the near term, from its current rate of around 4.12.
As the market opened, the ringgit also showed strength against a basket of major currencies. It gained against the yen, the British pound, and the euro. Additionally, the ringgit appreciated against ASEAN currencies, rising against the Indonesian rupiah, the Philippine peso, the Thai baht, and the Singapore dollar, further demonstrating its broad-based strength in the currency markets.