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THE Malaysian ringgit is expected to experience profit-taking next week, trading in the range of RM4.07 to RM4.09 against the US dollar, following a surge to levels approaching a six-year high.
The local currency opened the week higher at 4.09 and tracked an upward trajectory before closing at 4.07 on Friday. By 6 pm yesterday, the ringgit had strengthened to 4.0740/0785 against the US dollar, up from 4.0840/0880, levels last seen on 15 January 2020, when it closed at 4.0740.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid explained that technical indicators suggest the ringgit has entered overbought territory, which could trigger profit-taking activity.
“Next week, attention will be focused on the announcement of the United States’ third-quarter 2025 gross domestic product, which is expected on 23 December,” he told Bernama.
Earlier this week, the ringgit was influenced primarily by key U.S. economic reports, including the non-farm payrolls and Consumer Price Index (CPI) data, which provide clearer signals on the US monetary policy outlook.
November’s non-farm payrolls rose by 64,000 following a contraction in October, while the unemployment rate increased to 4.6 percent amid higher labour force participation, moderate wage growth, and relatively soft retail sales.
Meanwhile, U.S. inflation in November came in below expectations at 2.7 percent, compared with the 3.1 percent consensus forecast. Core inflation moderated to 2.6 percent from 3.0 percent in September.
On a weekly basis, the ringgit strengthened against the US dollar, closing higher at 4.0740/0785 from 4.0945/1005 at the end of the previous week.
The ringgit also appreciated against a basket of major currencies, gaining ground against the Japanese yen to 2.5909/5940 from 2.6264/6304, the British pound to 5.4514/4574 from 5.4789/4869, and the euro to 4.7715/7767 from 4.8037/8107.
Regionally, the ringgit performed strongly against other ASEAN currencies, rising against the Indonesian rupiah to 243.2/243.6 from 245.9/246.4, the Singapore dollar to 3.1515/1553 from 3.1701/1750, and the Thai baht to 12.9428/9620 from 12.9589/9845. However, it marginally weakened against the Philippine peso to 6.94/6.95 from 6.93/6.94.
Market watchers will closely monitor the ringgit’s movement next week as investors assess potential profit-taking ahead of critical US economic indicators and their implications for global currency markets. - December 20, 2025