Business

Ringgit rises against US dollar, major currencies ahead 2Q GDP announcement

Traders are now eyeing Malaysia's GDP print for monetary policy clues, but with markets heavily focused on trade talks, it may need to significantly exceed expectations to boost the currency

Updated 1 year ago · Published on 12 Aug 2025 9:05AM

Ringgit rises against US dollar, major currencies ahead 2Q GDP announcement
The ringgit is expected to trade within a range of RM4.23 to RM4.25 against the US dollar today - August 12, 2025

THE ringgit extended its uptrend against the US dollar and major currencies at the opening on Tuesday ahead of Malaysia's second quarter 2025 gross domestic product (GDP) data to be released on Friday, said an analyst.

The analyst said traders are now eyeing Malaysia's GDP print for monetary policy clues, but with markets heavily focused on trade talks, it may need to significantly exceed expectations to boost ringgit bulls.

At 8am, the local note appreciated to 4.2270/2460 versus the greenback, compared with Monday's close of 4.2320/2360.

Bernama also cited Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid saying the ringgit is expected to trade within a range of RM4.23 to RM4.25 against the US dollar today.

He said the US Dollar Index (DXY) climbed 0.35 per cent to 98.52 points ahead of the US consumer price index (CPI) report tonight. Consensus estimates have pegged the headline and core CPI at a much higher rate of 2.8 per cent and 3.0 per cent, respectively, in July, up from 2.7 per cent and 2.9 per cent in June.

"Against such a backdrop, the US Federal Reserve (Fed) is seen to be keeping steady in the upcoming meeting in September," he told Bernama.

Mohd Afzanizam noted that the Reserve Bank of Australia will announce its interest rate decision today, with consensus expecting a 25 basis points cut to 3.60 per cent.

At the opening, the ringgit ended firmer against major currencies.

It edged up against the yen to 2.8528/8658 from 2.8657/8686 at the close on Monday, improved against the euro to 4.9097/9317 from 4.9269/9316 and rose versus the British pound to 5.6777/7032 from 5.6933/6987.

The ringgit also trended higher against regional peers.

It strengthened against the Singapore dollar to 3.2841/2999 from 3.2936/2973 and rose against the Thai baht to 13.0198/0884 from 13.0569/0769.

The local currency inched up to 259.6/260.9 against the Indonesian rupiah from 259.9/260.3 previously, and gained against the Philippine peso to 7.41/7.44 from 7.42/7.43. - August 12, 2025

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