The ringgit opened higher for the week, extending its gains ahead of Malaysia's third-quarter 2025 gross domestic product (GDP) data due this afternoon.
At 10.30am, the ringgit was at 4.1300, down 0.10% against the US dollar since it opened early Friday in Asian trading.
IPPFA's director of investment strategy, Sedek Jantan, said Bank Negara Malaysia's 3Q economic report was expected to be a key catalyst for domestic sentiment, with macro indicators in line with the 5.2% growth forecast likely to bolster market confidence.
The stronger opening of the ringgit was also driven by a sharp decline in the US dollar index, although investors remained cautious ahead of new economic data and its potential impact on the December Fed policy meeting, especially with some data likely to be delayed.
He added that expectations of a Fed rate cut in December were fading, creating an external environment more supportive of Asian currencies.
In this situation, the ringgit has the potential to continue strengthening and may test the 4.10 level against the US dollar in the near term, compared to around 4.12 currently.
At the open, the ringgit was higher against a basket of major currencies.
It rose against the yen to 2.6649/2.6735 from 2.6700/2.6728 at Thursday's close, rose against the British pound to 5.4197/5.4368 from 5.4282/5.4334, and rose against the euro to 4.7921/4.4793 from 4.4793
The ringgit was also higher against Asean currencies.
It strengthened against the Indonesian rupiah to 246.3/247.2 from 246.6/247.0, and rose against the Philippine peso to 6.98/7.01 from 6.99/7.00.
It appreciated against the Thai baht to 12.7278/12.7786 from 12.7724/12.7903 and rose against the Singapore dollar to 3.1664/3.1767 from 3.1729/3.1762.
