THE ringgit is expected to trade cautiously against the U.S. dollar next week as global market sentiment remains influenced by developments in the Middle East
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said market attention next week would continue to centre on the conflict in the Middle East.
While key data such as the US Consumer Price Index (CPI) and personal consumption expenditure figures for February are scheduled for release, he noted their impact is likely to be muted in comparison to prevailing geopolitical factors.
“What the market is hoping for is a reduction in the conflict’s tension, however, this still seems difficult to achieve at present,” he told Bernama.
Meanwhile, Kenanga Investment Bank Bhd observed that markets remain focused on the trajectory of crude oil prices and their influence on US inflation and Federal Reserve policy.
Despite Malaysia benefitting economically from higher oil prices in the short term, the ringgit no longer moves in tandem with traditional oil benchmarks and is traded more like a volatile emerging market currency.
“Until investors have a clearer picture of the conflict’s duration, the US dollar is expected to remain strong, pushing the ringgit lower to the range of 3.94–3.98 against the US dollar,” the bank stated.
On a weekly comparison, the ringgit closed lower against the US dollar, ending the week at 3.9425/9535 versus 3.8910/8960 the previous Friday.
The local currency also traded mostly lower against a basket of major currencies this week.
It fell against the Japanese yen to 2.4973/5044 from 2.4930/4963 and declined versus the British pound to 5.2530/2676 from 5.2470/2538.
However, the ringgit strengthened against the euro, rising to 4.5634/5762 from 4.5898/5957.
Against ASEAN currencies, the ringgit traded mixed. It was weaker against the Singapore dollar at 3.0779/0867 from 3.0742/0784 and fell against the Indonesian rupiah to 232.9/233.6 from 231.7/232.2.
Conversely, the currency rose against the Philippine peso to 6.68/6.70 from 6.75/6.76 and strengthened against the Thai baht to 12.3392/3810 from 12.5153/5370. - March 7, 2026
.jpeg)
