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THE ringgit is expected to remain firm against the US dollar next week, with currency markets closely watching a scheduled meeting between United States President Donald Trump and Chinese President Xi Jinping amid hopes of easing geopolitical tensions and stabilising global trade sentiment.
Analysts said the local currency is likely to trade within the RM3.90 to RM3.95 range as investors assess the potential implications of renewed diplomatic engagement between Washington and Beijing, against the backdrop of continuing tensions over trade, Taiwan and the conflict involving Iran.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said markets were increasingly optimistic that the anticipated talks between the two leaders could contribute to reducing geopolitical uncertainty.
“Nonetheless, the situation in West Asia will continue to be the main focal point which can switch the market direction abruptly,” he told Bernama.
He said investors were hopeful that the United States-Iran conflict would de-escalate, adding that the Trump-Xi meeting could potentially pave the way for broader diplomatic calming measures.
Attention will also turn to domestic economic indicators next week, with Bank Negara Malaysia and the Department of Statistics Malaysia scheduled to release the country’s first-quarter 2026 gross domestic product data on May 15.
Malaysia’s economy is reportedly on course to expand by 5.3 per cent in the first quarter of 2026, supported by broad-based growth across key sectors including manufacturing, services and construction.
The ringgit ended the week stronger against the US dollar at 3.9185/9230 on Friday, compared with 3.9690/9740 a week earlier, reflecting improving market sentiment and renewed appetite for regional currencies.
The local currency also posted gains against most major currencies during the week. It strengthened against the British pound to 5.3354/3416 from 5.3593/3661 previously and appreciated against the euro to 4.6121/6174 from 4.6417/6476.
However, the ringgit slipped marginally against the Japanese yen to 2.5010/5040 from 2.4907/4942.
Against regional currencies, the ringgit traded mostly higher, advancing against the Thai baht to 12.1640/1844 from 12.1711/1932, strengthening versus the Indonesian rupiah to 225.4/225.7 from 228.7/229.2, and edging up against the Singapore dollar to 3.0910/0948 from 3.1061/1103.
It was, however, slightly weaker against the Philippine peso by the close of trading. - May 9, 2026
