THE ringgit strengthened against the US dollar at the start of trading on Monday, following the release of robust fourth-quarter gross domestic product figures for 2025.
Analysts said the better-than-expected 6.3 per cent growth announced last Friday has injected renewed confidence into the local currency.
At 8am, the ringgit opened at 3.8970/3.9190 against the greenback, firming from last Friday’s close of 3.9060/3.9155.
Bank Muamalat Malaysia Bhd’s Chief Economist Dr Mohd Afzanizam Abdul Rashid said the country’s resilient performance could prompt a revision of the current official GDP forecast for 2026, which stands at 4.0 to 4.5 per cent.
“This would mean the Overnight Policy Rate would be kept steady in 2026 as there is no urgency to overstimulate the economy,” he told Bernama, noting that the central bank is likely to maintain a cautious but balanced stance amidst ongoing global uncertainties.
Mohd Afzanizam added that the interest rate differential between the US Federal Reserve fund rate and Malaysia’s policy rate is expected to narrow, as the Fed is anticipated to ease its monetary policy stance later this year.
Consequently, he said the ringgit is poised to test the psychological threshold of RM3.9000 against the US dollar.
At the morning open, the local note was largely firmer against a basket of major currencies. It gained ground against the euro to 4.6242/4.6503 from Friday’s 4.6325/4.6390, and strengthened against the British pound to 5.3178/5.3479 from 5.3211/5.3286. However, it slipped slightly versus the Japanese yen to 2.5501/2.5648 from 2.5435/2.5474.
The ringgit also performed well against regional peers. It inched up against the Singapore dollar to 3.0860/3.1042 from 3.0904/3.0950, rose against the Thai baht to 12.5273/12.6200 from 12.5607/12.5849, and appreciated versus the Indonesian rupiah to 231.4/232.8 from 231.9/232.4. Gains were also seen against the Philippine peso, with the local note trading at 6.71/6.76 from 6.73/6.74.
Market watchers said the early strength of the ringgit reflects investor confidence in Malaysia’s economic resilience, while highlighting the potential for stable monetary policy amid global uncertainties and a cautiously easing US interest rate environment. - February 16, 2026
