Ringgit Edges Higher Against US Dollar Ahead of 4Q 2025 GDP Release

KUALA LUMPUR: The Malaysian ringgit opened slightly higher against the US dollar on Friday as investors awaited the release of Malaysia’s advance fourth-quarter 2025 (4Q 2025) gross domestic product (GDP) estimates later today.

At 8 a.m., the local currency was quoted at 4.0515/0600 against the greenback, slightly stronger than Thursday’s close of 4.0535/0595.

Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, said consensus forecasts point to a stronger GDP growth of 5.4% for the quarter. “Robust economic growth may reduce the urgency for the central bank to cut interest rates this year, which could provide support for the ringgit,” he said. He added that the local currency is likely to trade within the RM4.05–RM4.06 range today.

On Thursday, the ringgit fell 0.17% against the US dollar as the greenback strengthened following stronger-than-expected Initial Jobless Claims (IJC) in the United States. The US Dollar Index (DXY) rose 0.32% to 99.371 points, while the 2-year and 10-year US Treasury yields increased to 3.57% and 4.17%, respectively.

At the opening, the ringgit strengthened against a basket of major currencies. It rose against the Japanese yen to 2.5547/5604 from 2.5594/5633, appreciated versus the euro to 4.7034/7133 from 4.7167/7236, and gained against the British pound to 5.4213/4327 from 5.4467/4548.

Among ASEAN peers, the ringgit edged up against the Singapore dollar to 3.1456/1524 and the Thai baht to 12.8967/9341, while remaining largely unchanged against the Philippine peso at 6.81/6.83 and the Indonesian rupiah at 239.7/240.4.

Analysts say today’s GDP data could play a key role in shaping market sentiment for the ringgit in the near term, with potential implications for monetary policy and investor confidence.