Business

Ringgit set for range-bound trading as dollar strength and geopolitics dominate outlook

The currency is expected to remain stable supported by firm economic fundamentals but constrained by external pressures including US dollar movements, oil price volatility and geopolitical uncertainty

Updated 6 months ago · Published on 18 Apr 2026 2:46PM

Ringgit set for range-bound trading as dollar strength and geopolitics dominate outlook
Any adverse geopolitical escalation, particularly stemming from policy signals or announcements by Trump related to West Asia, could quickly shift market sentiment - April 18, 2026

THE ringgit is expected to trade within a narrow range against the US dollar next week, with external factors continuing to dictate short-term direction despite supportive domestic fundamentals.

IPPFA Sdn Bhd investment strategy director and country economist Mohd Sedek Jantan said Malaysia’s growth outlook remains a stabilising force for the currency, but global developments will remain the primary drivers.

“Brent crude oil is expected to remain above US$90 per barrel, offering a supportive terms of trade backdrop that should help anchor the currency.

“However, any adverse geopolitical escalation, particularly stemming from policy signals or announcements by Donald Trump related to West Asia, could quickly shift market sentiment, reinforcing dollar strength and introducing downside risks to the ringgit,” he told Bernama.

The ringgit ended the week firmer against the US dollar at 3.9505/9545 on Friday, compared with 3.9625/9680 at the close of the previous week, reflecting modest gains amid cautious trading conditions.

However, performance against other major currencies was mixed.

The local currency weakened against the British pound and the euro, while posting slight gains against the Japanese yen.

Against regional peers, the ringgit showed broader strength. It appreciated versus the Singapore dollar, Thai baht, Indonesian rupiah and Philippine peso, signalling relative resilience within the ASEAN currency bloc.

Analysts said the outlook for the ringgit remains closely tied to global risk sentiment, with oil prices providing some support as a key export driver, while ongoing geopolitical tensions and US policy signals continue to inject volatility into currency markets. - April 18, 2026

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