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THE ringgit is expected to trade cautiously next week, consolidating within the RM4.09 to RM4.11 range against the US dollar after posting a solid weekly gain and touching its strongest level in more than four years.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said sentiment in the coming days would be shaped largely by a series of important United States economic data releases, which are likely to guide currency markets.
“These include the Nonfarm Payrolls (NFP), Consumer Price Index (CPI), Personal Consumption Expenditures (PCE), as well as the University of Michigan Consumer Sentiment Index (CSI),” he said.
He added that these data points would be closely watched alongside remarks by US Federal Reserve officials, who are expected to reiterate their concerns about inflationary pressures. “This is also alongside a series of speeches by US Federal Reserve (Fed) officials, who are expected to share reservations regarding inflationary risk, as it is still oscillating above the two per cent level,” he told Bernama.
During the past week, the ringgit initially hovered around RM4.11 on Monday before weakening slightly ahead of the Federal Open Market Committee meeting. The local currency later rebounded after the US central bank cut interest rates, strengthening to 4.1040 on Thursday.
Momentum improved further towards the end of the week, with the ringgit climbing to the 4.09 level on Friday, marking a new four-year-and-seven-month high. The advance was supported by encouraging domestic economic data and improved investor sentiment.
On a weekly basis, the ringgit strengthened 0.39 per cent against the greenback, closing at 4.0945/1005 compared with 4.1105/1140 the previous week.
The local note also traded mostly higher against major currencies. It appreciated against the Japanese yen to 2.6264/6304 from 2.6536/6561 and strengthened against the British pound to 5.4789/4869 from 5.4859/4905. However, it edged lower versus the euro, slipping to 4.8037/8107 from 4.7912/7953.
Against regional currencies, the ringgit showed broad strength. It firmed against the Indonesian rupiah to 245.9/246.4 from 246.8/247.2, rose against the Singapore dollar to 3.1701/1750 from 3.1741/1773, and gained versus the Philippine peso at 6.93/6.94 from 6.97/6.98.
The only notable weakness was against the Thai baht, with the ringgit easing to 12.9589/9845 from 12.9054/9221 a week earlier. - December 13, 2025