Ringgit Trading Between 4.04–4.07 Next Week

Ringgit likely to trade within 4.04–4.07 range next week

The ringgit is expected to trade within a narrow range of between 4.04 and 4.07 against the US dollar next week, as currency markets adopt a cautious stance amid mixed global signals and limited near-term catalysts.

External Factors Remain the Primary Driver

Market participants are likely to remain focused on developments in the US, particularly incoming economic data and evolving expectations around the Federal Reserve’s policy trajectory. While recent indicators suggest easing inflationary pressures, policymakers have continued to emphasise data dependency, keeping the dollar broadly supported.

This has limited upside for emerging market currencies, including the ringgit, despite relatively stable domestic fundamentals.

Domestic Fundamentals Provide Underlying Support

On the home front, Malaysia’s macroeconomic conditions remain broadly supportive of the local currency. Resilient domestic demand, manageable inflation trends and a stable monetary policy outlook from Bank Negara Malaysia continue to anchor investor confidence.

However, the absence of major local policy announcements in the coming week suggests limited scope for a decisive breakout in either direction.

Range-Bound Trading Expected

Analysts note that the ringgit’s recent movements reflect consolidation rather than a shift in trend. With global risk appetite remaining fragile and foreign fund flows largely selective, traders are expected to adopt a wait-and-see approach.

As a result, the currency is likely to fluctuate within a tight band, with near-term movements driven more by external sentiment than domestic triggers.

Outlook

Barring unexpected shocks, the ringgit is expected to remain range-bound in the coming week. A clearer directional bias may only emerge once there is greater visibility on US monetary policy or a shift in global risk sentiment.