The ringgit continued its strengthening momentum against the US dollar and several other major currencies on Friday, supported by improving domestic sentiment as investors await the announcement of Malaysia's preliminary estimate of Gross Domestic Product (GDP) for the first quarter of 2026 scheduled for this afternoon.
At 10:11 am, the ringgit was at 3.9550 against the US dollar, down 0.08% since it opened early Friday in Asian trading.
The anticipation of the economic data is seen as a potential additional catalyst for the local currency's strength.
Bank Muamalat Bhd Chief Economist Mohd Afzanizam Abdul Rashid said the ringgit is expected to remain stable at RM3.95 today.
He explained that the market's main focus is currently on the preliminary GDP figures for the first quarter of 2026, which the median forecast is at 5.5 percent compared to 6.3 percent in the fourth quarter of 2025.
According to him, the data could provide additional support to the ringgit's performance if it is in line with expectations or better than market projections.
In global developments, risk sentiment is also supported by optimism over the second round of negotiations between the United States and Iran, as well as hopes for a more lasting ceasefire.
This development indirectly increases investors' risk appetite, thus benefiting emerging market currencies including the ringgit.
In the early trading session, the ringgit showed a strong performance when traded higher against a group of major currencies.
It strengthened against the pound to 5.3431/3512 from 5.3506/3560 in the previous session, and rose against the euro to 4.6537/6608 from 4.6551/6598 and rose against the Japanese yen to 2.4812/4851 from 2.4848/4874 previously.
Among ASEAN currencies, the ringgit also recorded a positive performance.
The ringgit strengthened against the Singapore dollar to 3.1026/1078 from 3.1069/1103 on Thursday, and rose against the Thai baht to 12.3222/3502 from 12.3473/3664 and also gained against the Philippine peso to 6.58/6.60 from 6.59/6.60 previously.
However, the ringgit remained flat against the Indonesian rupiah at 230.5/230.9.
