Kuala lumpur: The ringgit opened higher against the US dollar and major currencies on Monday, bolstered by robust advance estimates indicating Malaysia's economy expanded more rapidly in the second quarter (2Q) of 2026.

According to BERNAMA News Agency, at 8 am, the local currency appreciated to 4.0920/0995 against the greenback, improving from Friday's close of 4.0930/0990. The Department of Statistics Malaysia released advance estimates on Friday, revealing that the country's economy grew by 5.8 percent year on year in 2Q 2026, marking an acceleration from the 5.4 percent growth recorded in the first quarter.

Despite the positive domestic economic indicators, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that currency markets are expected to remain focused on developments in West Asia, particularly after the increase in casualties among United States military personnel following exchanges between US and Iranian forces. He mentioned that the US Dollar Index (DXY) continues to be well-supported, having risen by 0.08 percent from the previous close to 100.846 points.

"Given this context, the ringgit is likely to trade on a softer note. On Friday, it closed 0.57 percent lower against the greenback at RM4.0960. Consequently, the local currency might fluctuate within a range of RM4.0900 and RM4.1165 today," he informed Bernama.

The ringgit also showed strength against a selection of major currencies. It climbed against the British pound to 5.5017/5118 from 5.5018/5099 at Friday's close, advanced against the euro to 4.6759/6845 from 4.6824/6893, and appreciated against the Japanese yen to 2.5177/5225 from 2.5208/5246.

Additionally, the local currency recorded gains against most regional peers. It rose against the Singapore dollar to 3.1664/1727 from 3.1709/1758, strengthened against the Indonesian rupiah to 228.3/228.8 from 228.4/228.8, and advanced against the Thai baht to 12.1504/1781 from 12.1743/1965. The ringgit remained unchanged against the Philippine peso at 6.64/6.66.