KUALA LUMPUR, May 15 — The ringgit closed mostly higher against major currencies after Bank Negara Malaysia announced that Malaysia’s economy expanded by 5.4 per cent in the first quarter of 2026 (1Q 2026), exceeding the advance estimate of 5.3 per cent, driven by robust domestic demand, investment activities and exports.

However, the local note was lower against the US dollar today amid continued support for the greenback on expectations that the US Federal Reserve (Fed) would maintain its restrictive monetary stance.

At 6 pm, the ringgit depreciated to 3.9515/9580 against the greenback from 3.9300/9330 at Thursday’s close.

Earlier today, BNM reported that Malaysia’s economy expanded by 5.4 per cent, with household spending remaining resilient amid favourable labour market conditions and continued policy support, while investment activity was sustained by machinery and equipment spending, structures investment and the implementation of multi-year projects.

The central bank said private consumption expanded by 4.7 per cent in 1Q 2026, while private investment grew 7.8 per cent. Net exports surged 13.5 per cent amid steady export growth and a faster moderation in imports.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said strong US retail sales growth of 4.9 per cent year-on-year in April suggests that the Fed is likely to maintain its restrictive stance this year, providing support for the US dollar.

“Meanwhile, the recent meeting between US President Donald Trump and his Chinese counterpart Xi Jinping appeared cordial, suggesting that trade relations between the two countries remain fairly conducive for now,” he told Bernama.

At the close, the ringgit traded mostly higher against a basket of major currencies.

It appreciated against the British pound to 5.2749/2835 from 5.3094/3135, and rose against the euro to 4.5948/6024 from 4.6009/6044 at Thursday’s close.

However, it slid against the Japanese yen to 2.4927/4968 from 2.4886/4907 previously.

The local currency traded mostly lower against its regional peers.

It rose against the Thai baht to 12.0989/1247 from 12.1506/1652, but eased against the Singapore dollar to 3.0871/0927 from 3.0867/0893, shed against the Indonesian rupiah to 224.5/225.0 from 224.1/224.4 and was lower against the Philippine peso at 6.40/6.41 from 6.37/6.38. — Bernama

KUALA LUMPUR, May 15 — Malaysia’s firm economic prospects and sustained reform momentum are expected to provide enduring support to the ringgit, while external factors will continue to drive exchange rate movements, said Bank Negara Malaysia (BNM).

In a statement, the central bank said the ringgit strengthened against Malaysia’s major trading partners’ currencies in the first quarter of 2026 (1Q 2026), as reflected in the 1.4 per cent nominal effective exchange rate (NEER) appreciation.

The local note also appreciated by 0.5 per cent against the US dollar during the quarter, despite the dollar strengthening following the onset of the West Asia conflict amid risk-off sentiment.

“The ringgit’s appreciation was supported by Malaysia’s strong domestic fundamentals and growth momentum, alongside continued non-resident inflows into domestic markets.

“Notwithstanding some volatility following the West Asia conflict and reduced expectations for the United States Federal Reserve policy rate cuts, the ringgit has performed well on a year-to-date basis, appreciating by 3.3 per cent against the US dollar and 2.9 per cent on a NEER basis as of May 13, 2026,” it said.

BNM said it will closely monitor global developments and remains committed to ensuring the orderly functioning of the domestic foreign exchange market.

Meanwhile, the central bank also reported that the financial sector continues to support the financing needs of the economy, with credit growth to the private non-financial sector rising to 5.6 per cent in 1Q 2026 (4Q 2025: 5.3 per cent) following higher growth in outstanding loans (5.6 per cent; 4Q 2026: 4.9 per cent), particularly among businesses.

It said business loans expanded by 5.8 per cent in 1Q 2026 (4Q 2025: 3.9 per cent),  mainly due to higher loan growth among non-small and medium enterprises (SMEs), while SME’s loan growth was broadly sustained at 6.0 per cent (4Q 2025: 5.9 per cent).

For households, loan growth remained stable at 5.4 per cent in 1Q 2026 (4Q 2025: 5.5 per cent), with steady loan growth across most purposes, it added.

“Growth in outstanding corporate bonds moderated to 5.8 per cent in 1Q 2026 (4Q 2025: 6.9 per cent) amid lower issuances in the quarter,” BNM said.

Meanwhile, the banking sector continues to support customers through targeted and tailored measures to provide cash-flow relief, sustain business continuity, and preserve long-term financial viability.

It said financial institutions are offering repayment flexibility, financing restructuring, and advisory services to help customers and SMEs manage cash flow challenges.

Borrowers can also seek assistance through the Debt Management Programme and Small Debt Resolution Scheme offered by the Credit Counselling and Debt Management Agency.

In addition, the RM5 billion SME Stabilisation Relief Facility (SME SRF) is now open for applications through participating financial institutions, providing timely working capital support to viable SMEs affected by the ongoing West Asia conflict, alongside efforts to strengthen long-term SME resilience through structural reforms.

“BNM is working with the Credit Guarantee Corporation Malaysia Bhd (CGC) to introduce a RM10 billion guarantee scheme, which comprises six portfolio guarantee schemes addressing financial inclusion, climate and sustainability, productivity as well as resilience, and will be available to SMEs from June 1, 2026.

“Further information on the scheme will be announced in due course,” it said. — Bernama

KUALA LUMPUR, May 15 — The ringgit snapped a seven-trading-day rally to ease against the US dollar as traders turned cautious ahead of Malaysia’s first-quarter (1Q) 2026 gross domestic product (GDP) announcement later today.

At 8 am, the ringgit opened easier at 3.9320/9370 against the greenback from Thursday’s close of 3.9300/9330, although it traded firmer against other major currencies.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said today’s focus will be on Malaysia’s 1Q 2026 GDP, with most economists pencilling in growth of 5.3 per cent.

“As such, traders are expected to trade the ringgit cautiously,” he told Bernama amid expectations that the data could boost the local currency.

Meanwhile, Mohd Afzanizam said the US Dollar Index rose 0.36 per cent to 98.874 points after April 2026 US retail sales data indicated consumer spending remained fairly resilient.

At the opening, the ringgit traded higher against a basket of major currencies.

It appreciated against the Japanese yen to 2.4823/4856 from 2.4886/4907, strengthened versus the British pound to 5.2646/2712 from 5.3094/3135, and rose against the euro to 4.5855/5913 from 4.6009/6044 at Thursday’s close.

The local note traded mixed against regional peers.

It climbed against the Singapore dollar to 3.0798/0842 from Thursday’s close of 3.0867/0893 and strengthened against the Thai baht to 12.1171/1392 from 12.1506/1652 previously.

However, the ringgit weakened against the Indonesian rupiah to 224.3/224.7 from yesterday’s close of 224.1/224.4 and slipped against the Philippine peso to 6.38/6.39 from 6.37/6.38. — Bernama

KUALA LUMPUR, May 13 — The ringgit closed higher against the US dollar and other major currencies today, supported by improved sentiment towards Asian currencies ahead of the high-stakes meeting between United States President Donald Trump and Chinese President Xi Jinping this week.

At 6pm, the ringgit appreciated to 3.9285/9325 against the greenback from 3.9320/9360 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said Asian currencies were seen strengthening against the US dollar as markets looked forward to the meeting, scheduled for May 14-15, 2026.

“The market appears to be hoping for a positive outcome from the meeting, especially on issues surrounding the war in Iran and the Strait of Hormuz,” he told Bernama.

Nonetheless, Mohd Afzanizam said the situation remained fluid, and market sentiment could easily shift towards risk aversion.

Also, Malaysia’s first quarter (1Q) gross domestic product (GDP) will be announced on Friday, and the Statistics Department Malaysia has projected the Malaysian economy to grow by 5.3 per cent in 1Q 2026.

At the close, the ringgit traded higher against a basket of major currencies.

It appreciated against the Japanese yen to 2.4888/4916 from 2.4952/4979, strengthened versus the British pound to 5.3105/3160 from 5.3231/3286, and bagged against the euro to 4.5987/6034 from 4.6189/6236 at yesterday’s close.

The local currency traded mostly lower against regional peers.

It gained against the Singapore dollar to 3.0872/0906 from 3.0888/0922, but fell against the Indonesian rupiah to 224.7/225.1 from 224.3/224.6, shed against the Philippine peso to 6.40/6.41 from 6.39/6.41, and shaved against the Thai baht to 12.1419/1599 from 12.1276/1455 previously. — Bernama