KUALA LUMPUR: The ringgit is expected to maintain its momentum and trade within a range of 3.93 to 3.96 against the US dollar next week, as investors shift their focus to key United States economic data for direction.
Earlier this week, the ringgit strengthened to breach the 4.00 psychological level against the US dollar, as the currency extended its uptrend that began the week before, reflecting improving sentiment towards Malaysia’s economic fundamentals and policy stability.
On Tuesday, Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said policy certainty, ongoing government reforms and supportive external factors have contributed to the ringgit’s steady appreciation to levels last seen in 2018.
He said that while both external and domestic factors play vital roles, domestic factors remain the key focus for strengthening economic fundamentals, enhancing competitiveness, and sustaining reform measures supportive of long-term growth. These are the drivers for the ringgit going forward.
“These things are very important, and if we get them right, the outcome is the ringgit becoming more attractive and investments flowing into the country,” he told Bernama in an interview recently.The ringgit rebounded to 3.9175 against the US dollar on Wednesday, marking its strongest closing level since April 2018. On a year-on-year basis, the local currency has appreciated 10.77 per cent against the greenback.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants will be closely monitoring upcoming US economic data, particularly the Nonfarm Payroll (NFP) report, the unemployment rate, and the Institute for Supply Management (ISM) indices for the manufacturing and services sectors.
He noted that the US Federal Reserve (Fed), in its latest Federal Open Market Committee (FOMC) statement, maintained its view that US economic activity has been expanding at a solid pace, prompting traders and investors to assess whether incoming data will continue to support that assessment.
“Despite today’s movement, the ringgit has appreciated quite substantially this week, gaining about 1.6 per cent from last week’s level of 4.0068 to the dollar on Jan 23, 2026,” he told Bernama.
Mohd Afzanizam expects the ringgit to remain well supported within the range of 3.93 to 3.96 to the US dollar.
In a note, Kenanga Investment Bank Bhd said attention next week will turn to the US labour market data, which is expected to shape expectations for the Fed’s policy stance heading into March.
“Market consensus points to a firm Nonfarm Payroll print and a stable unemployment rate, outcomes that could lend the US dollar modest near-term support.
“Beyond macroeconomic data, markets are also watching President Donald Trump’s potential nominee for the Fed chair, which could be announced soon,” it said.
The ringgit ended the week sharply higher against the US dollar, strengthening on a week-on-week basis to close at 3.9440/9500 compared with 4.0045/0080 last Friday.
The local note traded mostly higher against a basket of major currencies this week.
It appreciated vis-a-vis against the British pound to 5.4163/4245 from 5.4177/4224, rose versus the euro to 4.6957/7029 from 4.6993/7034, but slid against the Japanese yen to 2.5562/5603 from 2.5337/5361 a week earlier.
The ringgit also traded firmer compared with its ASEAN peers.
It went up versus the Singapore dollar to 3.1077/1127 from 3.1302/1330, surged against the Thai baht to 12.5250/5544 from 12.8362/8544, was higher compared with the Indonesian rupiah at 234.9/235.4 from 238.0/238.3, and improved against the Philippine peso to 6.69/6.71 from 6.77/6.78 previously. – Abdul Hamid A Rahman/BERNAMA
