THE ringgit is expected to remain stable next week, trading around the 3.95 level against the United States dollar amid seasonal holiday conditions, according to market observers.
Local markets were closed yesterday and will also be shut on Monday, March 23, in conjunction with the Hari Raya Aidilfitri celebrations, contributing to thinner trading activity.
Kenanga Investment Bank Bhd said the Federal Reserve’s measured but easing-leaning stance has limited further gains in the US dollar, thereby supporting relative stability in currency markets.
In a research note issued on Thursday, the investment bank said investors are likely to remain cautious, with policy adjustments by the Fed expected only in the final quarter of the year.
“We expect the conflict in West Asia to persist while the Fed is not overly reactive to temporary inflation spikes at this juncture.
“Malaysia’s status as a net energy exporter provides a structural hedge as Brent crude prices have already factored in existing risk elements,” the bank said.
Meanwhile, Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the ringgit–US dollar pair is expected to trade broadly unchanged in the coming week.
He noted that investors are closely monitoring uncertainties linked to the ongoing conflict in Iran, which continues to influence global market sentiment.
On a weekly basis, the ringgit strengthened slightly against the US dollar, closing at 3.9330/9415 on Thursday compared with 3.9365/9410 at the end of the previous trading week.
However, the local currency traded lower against several major currencies over the same period.
The ringgit weakened against the Japanese yen to 2.4716/4771 from 2.4683/4715 previously, slipped against the British pound to 5.2246/2359 from 5.2214/2273, and declined against the euro to 4.5139/5237 from 4.5093/5144.
In contrast, the ringgit posted gains against regional ASEAN currencies.
It strengthened against the Singapore dollar to 3.0671/0740 from 3.0730/0767, appreciated against the Thai baht to 11.9872/12.0204 from 12.1862/2062, rose against the Indonesian rupiah to 231.4/232.0 from 232.1/232.5, and improved against the Philippine peso to 6.54/6.56 from 6.59/6.60. - March 21, 2026
