Ringgit seen rising to RM4.07-4.08 next week on 6% GDP

The ringgit is expected to trade around RM4.07 to RM4.08 against the US dollar with an upside bias next week, driven by sentiment following Malaysia's second-quarter gross domestic product (GDP) announcement on Friday.

The forecast comes after Malaysia's economy grew six per cent in the second quarter of 2026, surpassing the consensus estimate of 5.8 per cent and the 5.4 per cent recorded in the first quarter.

Contents

01

What is driving the ringgit's outlook

02

What the central bank said

03

How the ringgit traded this week

04

Performance against regional currencies

What is driving the ringgit's outlook

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the stronger-than-expected GDP growth, coupled with an upcycle in the technology sector and higher commodity prices, would continue to drive growth momentum and support the ringgit.

He said the performance showed the Malaysian economy remained resilient despite heightened economic uncertainties from abroad, and that this should bode well for the ringgit next week as the second half of the year is expected to be fairly stable and resilient due to supportive monetary and fiscal policies.

What the central bank said

Bank Negara Malaysia said the second-quarter growth was driven by continued domestic demand and robust exports. Household spending was supported by steady income growth and ongoing policy support, while investment growth was underpinned by continued spending on structures and machinery and equipment.

On the external front, the central bank said export growth accelerated, driven mainly by continued strength in electrical and electronics products and sustained expansion in services, as well as a rebound in exports of liquefied natural gas and non-E&E manufacturing products.

How the ringgit traded this week

On a Friday-to-Friday basis, the ringgit rose against the US dollar to 4.0840/0885 from 4.0885/0930 a week earlier. It strengthened against the Japanese yen to 2.5660/5690 from 2.5813/5843.

However, the local note depreciated against the British pound to 5.5232/5293 from 5.4949/5010 and slipped against the euro to 4.7182/7234 from 4.7132/7184.

Performance against regional currencies

The ringgit traded mixed against ASEAN currencies. It improved against the Philippine peso to 6.64/6.66 from 6.71/6.72 and edged higher against the Thai baht to 12.3153/3333 from 12.3665/3843.

It slid against the Singapore dollar to 3.1924/1964 from 3.1911/1949 and decreased against the Indonesian rupiah to 229.0/229.4 from 228.4/228.7 a week earlier.