Ringgit set to trade between 3.95 and 3.97 against US dollar next week

KUALA LUMPUR: The ringgit is expected to trade within a narrow range of between RM3.95 and RM3.97 next week against the US dollar amid a shortened trading week.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said that next week, the focus would be on the United States’ personal consumption expenditures (PCE) inflation data for April.

“It seems the PCE is likely to be on the high side in light of the elevated petrol prices during April. In addition, it is a holiday-shortened week following the Aidiadha celebration on Wednesday.

“Hence, ringgit will maintain its narrow range trade,” he added.

Mohd Afzanizam said while the ringgit is expected to move in a narrow range, Malaysia’s macroeconomic matrices are fairly decent.

“Our surplus in the current account balance widened to 3.0 per cent of gross domestic product (GDP) in the first quarter of this year (1Q 2026) from 0.5 per cent in the fourth quarter of last year.

“Fiscal deficits narrowed to 3.3 per cent of GDP in 1Q 2026 from 4.5 per cent in 1Q 2025,” he said.

He also noted that Malaysia’s foreign exchange reserve has risen to US$129.5 billion as of May 15, 2026 compared to US$125.5 billion on Dec 31, 2025.

The ringgit was lower against the US dollar at 3.9655/9700 on Friday from 3.9515/9580 the week before.

The local note traded mostly easier against a basket of major currencies this week.

It fell versus the British pound to 5.3245/3305 from 5.2749/2835, appreciated against the euro to 4.6012/6064 from 4.5948/6024 but gained versus the Japanese yen to 2.4925/4954 from 2.4927/4968.

The ringgit also traded mostly lower against its ASEAN peers.

It rose versus the Indonesian rupiah to 223.8/224.1 from 224.5/225.0 but it eased vis-a-vis the Singapore dollar to 3.0985/1023 from 3.0871/0927, fell against the Thai baht to 12.1421/1611 from 12.0989/1247 and declined against the Philippine peso to 6.42/6.44 from 6.40/6.41.

The market will be closed on May 27 in conjunction with the Aidiladha public holiday and will resume operations on May 28.

It would also be closed on June 1 and 2 for the King’s Birthday and Wesak Day holidays, before resuming operations on June 3.

© New Straits Times Press (M) Bhd

المصدر: New Straits Times