KUALA LUMPUR (Bernama): The ringgit is expected to trade firmer and remain around the 3.90 level against the US dollar this week, supported by the strong domestic economic growth momentum that continues to influence market sentiment.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the local currency is currently hovering around RM3.90 against the US dollar but could test its immediate resistance level of RM3.87 from Monday
"The euphoria on strong growth will continue to shape traders’ sentiment next week, which will benefit the ringgit in the near term,” he told Bernama.
Kenanga Investment Bank Bhd (Kenanga IB) noted that the greenback weakness remained the primary driver of the ringgit gains. It said the US Dollar Index (DXY) slipped below 97.0 as markets chose to sell rallies rather than extend them.
"Focus will turn to US inflation cross-checks. Investors will parse the US Federal Open Market Committee (FOMC) minutes for signals on labour cooling, while inflation numbers remain pivotal for rate repricing. Malaysia’s Consumer Price Index and export data will test whether external softness is feeding through trade.
"Solid US data no longer guarantees sustained US dollar strength. Strategic diversification flows and recalibrated growth expectations have increased the market’s tendency to monetise rallies.
"For the ringgit, the external US dollar path remains dominant while domestic stability plays a supporting role. A sustained US dollar recovery would require firmer inflation and higher real yields,” it said in a note.
Bank Negara Malaysia previously reported that the local currency rose 3.9 per cent against the greenback in the fourth quarter of 2025, driven by both external and domestic factors.
On Thursday, the local currency touched 3.8995 against the greenback, hovering near its strongest level in almost eight years, last seen on April 23, 2018, at 3.8965/8995.
On a week-on-week basis, the ringgit ended the week firmer against the US dollar to close at 3.9060/9115 compared with 3.9440/9525 last Friday.
The local note traded mostly higher against a basket of major currencies this week.
It fell against the Japanese yen to 2.5435/5474 from 2.5111/5167, but appreciated vis-à-vis the British pound to 5.3211/3286 from 5.3548/3663 and rose versus the euro to 4.6325/6390 from 4.6508/6608 a week earlier.
The ringgit traded mostly higher compared with its Asean peers.
It went up versus the Singapore dollar to 3.0904/0950 from 3.0965/1034, was higher compared with the Indonesian rupiah at 231.9//232.4 from 233.6/234.3, and climbed against the Philippine peso to 6.73/6.74 from 6.73/6.75 previously.
However, it edged down against the Thai baht to 12.5607/5849 from 12.4609/4933. -- Bernama
