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Currency · Forex Outlook · Ringgit · US Dollar
The Malaysian Ringgit is expected to trade in a narrow range of 4.03 to 4.05 against the US dollar next week, influenced by New Year celebrations and a lack of market catalysts, according to Bank Muamalat Malaysia Bhd chief economist Dr.
Mohd Afzanizam Abdul Rashid. Bank Muamalat's Dr.
Mohd Afzanizam Abdul Rashid attributes the narrow range to New Year celebrations and a lack of fresh data. Kenanga Investment Bank Bhd states the Ringgit has struggled to sustain a move below 4.00 against the US dollar for nearly seven years, maintaining its end-2025 forecast at 4.08 but seeing scope for it to close closer to 4.00.
Kenanga also projects seasonal US dollar strength in Q1 2026, combined with resilient US growth, will push the pair towards 4.05-4.10 early next year, with the Ringgit gradually strengthening towards its long-term fair value as structural US dollar support erodes. This week, the Ringgit traded mixed, opening at 4.07, strengthening to 4.0410, and closing at 4.0470, influenced by US interest rate cut expectations and weaker US consumer confidence.
The Ringgit strengthened against the Japanese yen to 2.5866/5909 from 2.5909/5940, appreciated versus the euro to 4.7629/7706 from 4.7715/7767, gained versus the Indonesian rupiah to 241.6/242.2 from 243.2/243.6, increased against the Singapore dollar to 3.1497/1550 from 3.1515/1553, and advanced against the Philippine peso to 6.89/6.90 from 6.94/6.95. However, the local currency depreciated against the British pound to 5.4570/4657 from 5.4514/4574 and vis-a-vis the Thai baht to 13.0212/0484 from 12.9428/9620.
