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THE ringgit is likely to trade cautiously in the coming days, hovering between RM4.09 and RM4.11 against the US dollar, as market participants await a raft of key economic data from the United States and fresh signals from Federal Reserve policymakers.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the local currency’s near-term direction would be influenced by several high-impact US releases scheduled for the week. These include the non-farm payrolls report, the consumer price index, personal consumption expenditures data and the University of Michigan consumer sentiment index.
“This is also alongside a series of speeches by Federal Reserve (Fed) officials, who are expected to share reservations regarding inflationary risk, as it is still oscillating above the 2% level,” he told Bernama.
The ringgit strengthened by 0.39 per cent week-on-week, supported by improving domestic economic indicators and a shift in global monetary sentiment. It ended last week on a firmer footing after a volatile period that saw the currency briefly weaken ahead of the Federal Open Market Committee meeting before rebounding sharply following the US central bank’s decision to cut interest rates.
The local note opened last week at around RM4.11 against the greenback and softened midweek as investors adopted a cautious stance ahead of the Fed’s policy decision. Following the rate cut, the ringgit recovered to 4.1040 last Thursday before extending its gains to the 4.09 level by Friday.
The late-week rally marked a fresh four-year-and-seven-month high for the ringgit, underpinned by positive Malaysian economic data and broad-based support for regional currencies. On a weekly basis, the ringgit closed stronger at 4.0945/1005 against the US dollar, compared with 4.1105/1140 a week earlier.
Against a basket of major currencies, the ringgit traded mostly higher. It strengthened against the Japanese yen to 2.6264/6304 from 2.6536/6561 previously and gained versus the British pound, rising to 5.4789/4869 from 5.4859/4905. However, it edged lower against the euro, easing to 4.8037/8107 from 4.7912/7953 at the end of the previous week.
The ringgit also recorded broad gains against most of its regional peers. It appreciated against the Indonesian rupiah to 245.9/246.4 from 246.8/247.2, strengthened versus the Singapore dollar to 3.1701/1750 from 3.1741/1773 and advanced against the Philippine peso to 6.93/6.94 from 6.97/6.98.
The only notable exception was the Thai baht, against which the ringgit weakened slightly to 12.9589/9845 from 12.9054/9221 a week earlier.
With global markets finely balanced between easing monetary policy and persistent inflation concerns, analysts expect the ringgit to remain range-bound in the near term, taking its cues largely from developments in the US economic outlook and Federal Reserve guidance. - December 15, 2025