THE ringgit is expected to trade firmer next week, hovering around the RM3.90 level against the US dollar, underpinned by sustained domestic economic growth and improving market sentiment.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid noted that the local currency has been trading around RM3.90 against the greenback and could test an immediate resistance level of RM3.87 in the coming days.
“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 highlighted that the ringgit’s recent gains were primarily driven by weakness in the US dollar. The US Dollar Index slipped below 97.0 as investors opted to sell rallies rather than extend them.
The bank noted that attention will turn to US inflation data and the Federal Open Market Committee minutes, which could provide signals on labour market cooling and rate expectations.
“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,” the bank added.
For the ringgit, the path of the US dollar remains the dominant influence, while domestic economic stability plays a supporting role. Kenanga said a sustained recovery in the greenback would require firmer US inflation and higher real yields.
Bank Negara Malaysia previously reported that the local currency appreciated by 3.9 per cent against the US dollar in the fourth quarter of 2025, reflecting both external and domestic factors.
On Thursday, the ringgit touched 3.8995 against the greenback, approaching its strongest level in nearly eight years, last recorded on April 23, 2018, at 3.8965/8995.
On a weekly basis, the currency closed at 3.9060/9115, compared with 3.9440/9525 the previous Friday.
The ringgit also traded mostly higher against a basket of major currencies. It strengthened against the British pound to 5.3211/3286 from 5.3548/3663, and against the euro to 4.6325/6390 from 4.6508/6608, although it slipped against the Japanese yen to 2.5435/5474 from 2.5111/5167.
Within the ASEAN region, the ringgit appreciated against the Singapore dollar to 3.0904/0950 from 3.0965/1034, against the Indonesian rupiah to 231.9/232.4 from 233.6/234.3, and against the Philippine peso to 6.73/6.74 from 6.73/6.75, but edged lower against the Thai baht to 12.5607/5849 from 12.4609/4933.
The outlook for the ringgit in the coming week remains cautiously optimistic as domestic growth momentum continues to bolster investor confidence while external factors, particularly US dollar movements and inflation signals, continue to influence currency performance. - February 14, 2026
