Malaysian Ringgit Gains on Strong GDP and Trade Data

The Malaysian ringgit closed higher against a basket of major currencies and ASEAN peers on October 19, 2026, driven by a series of positive domestic economic indicators. The Department of Statistics Malaysia reported that the economy grew by 5.3% in the third quarter of 2026, although this represented a slowdown from the 6% growth seen in the previous quarter. Further support came from data showing that inflation eased to 1.8% in September and total trade surged 53.7% year-on-year to RM396.5 billion.

While the ringgit strengthened against the euro, British pound, Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso, it weakened against the Japanese yen. The currency remained relatively stable against the US dollar, opening at 4.0790/4.0855 and closing slightly lower at 4.0805/4.0845. Analysts noted that the US dollar continued to benefit from safe-haven demand amid concerns over artificial intelligence stock valuations.

The ringgit also showed resilience against regional volatility triggered by MSCI's consideration of downgrading Indonesia's stock market from emerging market to standalone market. This potential move caused the Indonesian rupiah to depreciate and the Jakarta Composite Index to drop 3.57%.