The ringgit is expected to trade in a narrow range of between RM3.94 and RM3.96 against the United States (US) dollar next week, according to Bank Muamalat Malaysia Bhd Chief Economist, Mohd Afzanizam Abdul Rashid.
He said the Malaysian economy so far is still showing encouraging performance as domestic and external demand continue to be the main drivers of the country's growth. The Malaysian economy grew by 5.4% in the first quarter of 2026, beating the initial forecast of 5.3%.
At 11.30 am, the ringgit was at 3.9750, down 0.71% since it opened early Monday in Asian trading.
However, he expected the second half of the year to be more challenging if the Iran conflict and disruptions in the Strait of Hormuz continue, which could put pressure on global market sentiment and energy prices.
On Friday, Bank Negara Malaysia reported that the country's economic growth was supported by continued strong household spending, stable labour market conditions and continued government policy support.
Investment activity continued to be driven by spending on machinery and equipment, structural development and the implementation of long-term projects. Private consumption expanded by 4.7% in the first quarter of 2026, while private investment increased by 7.8%.
At the same time, the country's exports remained stable despite import growth showing a faster rate of moderation. These factors helped support the momentum of the domestic economy as global uncertainties persist.
The ringgit closed slightly lower against the US dollar at 3.9185/9580 on Friday compared to 3.9185/9230 the previous week. However, the local currency still outperformed most major and ASEAN currencies throughout the week.
The ringgit also strengthened against the Singapore dollar to 3.0871/0927 from 3.0910/0948 last week. In addition, the ringgit also rose against the Thai baht and the Indonesian rupiah, reflecting the positive sentiment towards the Malaysian economy for now.
