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THE national currency is set to maintain its upward momentum in the coming week, with economists pointing to improving sentiment linked to developments in West Asia, although caution persists amid unresolved geopolitical tensions.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said financial markets remain closely focused on the situation in Iran, particularly the durability of the ceasefire and the potential reopening of the strategically vital Strait of Hormuz.
“Markets will also be watching a series of speeches by United States Federal Reserve officials for further clues on the impact of the conflict, alongside recent mixed economic data,” he said.
The interplay between geopolitical developments and monetary policy signals is expected to remain a key driver of currency movements, with investors weighing both risks and opportunities.
At the same time, Kenanga Investment Bank Bhd cautioned that market participants are likely to remain guarded, avoiding aggressive positions on the ringgit until clearer progress emerges from ongoing peace talks between the United States and Iran in Islamabad.
“The ceasefire appears tenuous, while Israeli opposition to renewed diplomacy complicates efforts towards a broader agreement. Continued military friction in Lebanon also risks re-escalation, keeping the Strait of Hormuz risk premium elevated.
“We expect the ringgit to trade within the 4.00–4.05 range next week, as geopolitical scepticism outweighs temporary relief. A move towards 3.95 is possible if de-escalation holds,” the bank said in a note.
Despite the cautious outlook, the ringgit has already posted broad-based gains over the past week, supported by sustained buying interest.
The currency strengthened to 3.9625/9680 against the US dollar on Friday, compared with 4.0295/0350 at the close of the previous trading week.
It also recorded gains against other major currencies, rising against the British pound, appreciating versus the Japanese yen, and strengthening against the euro over the same period.
The ringgit similarly advanced against regional peers, including the Singapore dollar, Thai baht, Indonesian rupiah and Philippine peso, reflecting improved investor confidence amid tentative optimism over easing geopolitical tensions.
However, analysts caution that the currency’s trajectory will remain closely tied to developments in the Middle East, with any reversal in ceasefire conditions or escalation in regional conflict likely to quickly undermine recent gains. - April 11, 2026
