KUALA LUMPUR: The ringgit is anticipated to trade within a stable range against the US dollar next week, as external greenback strength is moderated by Malaysia’s improving fiscal outlook following Friday’s Budget 2026 announcement.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said that while the greenback remains supported by safe-haven flows and lingering United States political uncertainty, its rally appears to be nearing exhaustion as markets anticipate a potential Federal Reserve (Fed) rate cut by late October.
Domestically, he noted that Malaysia’s credible fiscal trajectory, anchored by a 3.5 per cent deficit target, disciplined spending, and the strategic mobilisation of government-linked investment company (GLIC) balance sheets, continues to underpin investor confidence.
"In the medium term, the ringgit is expected to strengthen gradually as the fiscal deficit narrows and Malaysia’s policy credibility gains further traction. Overall, the USD/MYR is likely to consolidate within a narrow band, with sentiment broadly steady barring major surprises in US inflation data or global risk sentiment,” Mohd Sedek told Bernama.
On a weekly basis, the ringgit weakened against the greenback, closing at 4.2200/2260 versus 4.2055/2125 previously.
However, the local note strengthened against a basket of major currencies.
It appreciated against the Japanese yen to 2.7618/7659 from 2.8537/8586, increased versus the euro to 4.8838/8907 from 4.9360/9442, and rose against the British pound to 5.6084/6164 from 5.6577/6671.
The ringgit traded mostly firmer against its ASEAN peers, except versus the Indonesian rupiah to 254.6/255.1 from 253.9/254.4 previously.
It rose against the Singapore dollar to 3.2494/2543 from 3.2621/2678, improved against the Thai baht to 12.8942/9184 from 12.9807/13.0084 and edged up against the Philippine peso to 7.24/7.26 from 7.26/7.28. - Bernama
