THE ringgit is likely to fluctuate in a narrow range of between 4.03 and 4.05 against the US dollar in the coming week, according to economists, as the holiday-shortened week limits market activity and reduces the flow of new economic data.
Bank Muamalat Malaysia Bhd’s chief economist, Dr Mohd Afzanizam Abdul Rashid, told Bernama that the ringgit’s stability is largely attributable to the New Year celebrations and a dearth of market-moving developments.
“It is likely that the USDMYR will continue to hover within a narrow range next week, possibly around 4.03 to 4.05, owing to a lack of fresh leads, especially on the data front,” he said.
Kenanga Investment Bank Bhd noted that after the ringgit breached the 4.00 mark against the US dollar for the second time since June 2018, it has struggled to sustain levels below that threshold for nearly seven years.
“We have maintained our end-2025 forecast of 4.08 against the US dollar since May, but see scope for the ringgit to end the year closer to 4.00 against the US dollar. That level is likely to present strong resistance,” the bank said in a research note.
It added that seasonal US dollar strength in the first quarter of 2026, coupled with a resilient US economic growth narrative, could see the pair move back towards 4.05-4.10 against the US dollar early next year.
“Beyond that, the ringgit should gradually strengthen towards its long-term fair value as structural support for the US dollar continues to erode,” Kenanga noted.
This week, the ringgit traded mixed, opening at 4.07 against the greenback before rising to 4.0410 on Friday morning, and subsequently easing to close the week at 4.0470.
At 8 am yesterday, the local currency surged to 4.0410/0495 against the US dollar, up from Wednesday’s close of 4.0425/0515, marking its highest level in nearly five years. The last comparable peak was 4.0450/0443 on 26 February 2021. Market activity was limited due to the Christmas holiday on Thursday.
Earlier in the week, the ringgit’s movements were influenced by market expectations of a US interest rate cut and weaker US consumer confidence data. On a weekly basis, the ringgit strengthened against the US dollar, closing at 4.0470/0535 compared with 4.0740/0785 at the end of the previous week.
Against other major currencies, the ringgit mostly gained. It strengthened against the Japanese yen to 2.5866/5909 from 2.5909/5940 a week earlier and appreciated versus the euro to 4.7629/7706 from 4.7715/7767, but weakened slightly against the British pound to 5.4570/4657 from 5.4514/4574.
Regionally, the ringgit traded mostly higher against ASEAN peers, gaining versus the Indonesian rupiah to 241.6/242.2 from 243.2/243.6, appreciating against the Singapore dollar to 3.1497/1550 from 3.1515/1553, and rising against the Philippine peso to 6.89/6.90 from 6.94/6.95. However, it declined slightly against the Thai baht to 13.0212/0484 from 12.9428/9620. - December 27, 2025
