Ringgit Likely To Trade Higher Next Week, Aiming To Breach 4.00-Mark Again

By Danni Haizal Danial Donald

KUALA LUMPUR, Jan 24 (Bernama) -- The ringgit is likely to trade higher as investors remain constructive towards the local note, aiming to break the 4.00-level again next week.

On Friday, the ringgit broke through the key psychological level of 4.00 against the US dollar, touching an over seven-year high of 3.9992.

This also marks the Malaysian currency’s strongest level in more than seven years, which was last seen on June 18, 2018, at 3.9960/9990.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors would also shift their focus towards the Federal Open Market Committee (FOMC) meeting on Jan 27-28.

“It is likely that the United States Federal Reserve (Fed) would keep the rate steady. But, more important is its latest assessment of the economic condition,” he told Bernama.

Meanwhile, Kenanga Investment Bank Bhd expects the ringgit to trade in the 4.04-4.05 range next week, provided the FOMC meeting outcome is hawkish, which would push the US dollar index higher.

“The overnight US data and the recent sell-off in bonds and equities have done little to alter market pricing of the Fed’s next move.

“Our base case remains two cuts this year, more likely starting in the first half of 2026 rather than concentrated at year-end, as incoming data ahead of the March FOMC should support an earlier move,” it said in a research note.

The ringgit ended the week sharply higher against the US dollar, strengthening on a week-on-week basis to close at 4.0045/0080, compared with 4.0555/0605 last Friday.

The ringgit traded higher against a basket of major currencies this week.

It strengthened against the Japanese yen to 2.5337/5361 from 2.5637/5670 a week earlier, appreciated versus the euro to 4.6993/7034 from 4.7076/7134 and appreciated vis-a-vis the British pound to 5.4177/4224 from 5.4332/4399 previously.

The ringgit also traded firmer against its ASEAN peers.

It rose against the Thai baht to 12.8362/8544 from 12.9115/9332 last week, and was higher against the Singapore dollar to 3.1302/1330 from 3.1479/1521.

The local currency appreciated against the Indonesian rupiah to  238.0/238.3 from 240.1/240.5 a week ago, and inched up against the Philippine peso to 6.77/6.78 from 6.83/6.84 previously. 

-- BERNAMA