USD/MYR climbed 0.2% to 4.07, extending gains to a fourth session as the ringgit weakened alongside foreign portfolio outflows from Malaysian equities. Since the start of September, overseas accounts have net sold USD120mn of local shares, adding pressure to the currency even as broader domestic conditions remain supportive.
Industrial Production Growth Slows
July industrial production rose 4.7% year on year, undershooting the Bloomberg consensus of 5.6% and slowing from 6.5% in June, the weakest pace since March. The softer print was concentrated in mining, while manufacturing and electricity output held up, with demand linked to AI-related electronic products and firmer domestic spending underpinning activity.
Policy Outlook Amid Currency Pressure
Policymakers at Bank Negara Malaysia are positioned to look through mining-led weakness tied to mature oil fields, while persistent inflation pressures underpin a slightly more hawkish tone that may limit further near-term ringgit losses.
