Ringgit Set To Stay Firm With Upside Bias Against USD Next Week

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, May 24 (Bernama) -- The ringgit is expected to stay firm with an upside bias against the greenback next week, ahead of the release of US central bank meeting minutes and the US personal consumption expenditures inflation report.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid reckons that the prevailing upward trend of the ringgit will continue due to continued concerns over the US fiscal position.

“The USD/MYR has breached its immediate support level of RM4.2624, and the next (resistance) level  (for the ringgit) is located at RM4.0947. Perhaps the ringgit would continue to strengthen on the back of a weak US dollar outlook,” he told Bernama. 

Ringgit performance amid ASEAN Summit

Amid the 46th ASEAN Summit in Kuala Lumpur on May 26–27, SPI Asset Management managing partner Stephen Innes expects the ringgit to trade with a modest tailwind, reflecting broader US dollar softness and renewed interest in emerging Asia foreign exchange.

“Next week’s ASEAN Summit in Kuala Lumpur might not be a game changer on its own, but it could influence sentiment depending on how the policy optics unfold. These gatherings seldom provide immediate market-moving headlines, but investors will be attentive to nuances - especially anything suggesting tighter ASEAN integration, moves towards de-dollarisation, or alignment with US trade objectives,” he said. 

Additionally, he added that a supportive tone could reinforce Malaysia’s positioning in regional supply chains and digital trade corridors, which, in turn, could enhance confidence in the ringgit.

“Announcements around cross-border digital payment infrastructure, logistics hubs, or energy transition financing could lift foreign direct investment sentiment and inject short-term bullishness into the ringgit. But without concrete capital commitments, these would be more about narrative,” he said. 

Innes said the ringgit’s current strength reflects a favourable external macro backdrop that is “supportive but not transformative.”

“It’s trading on the broader narrative - a weaker dollar, diminishing US fiscal credibility, and the reawakening of Malaysia's role in tech trade. The ASEAN Summit may provide insight, but it’s the global macro pulse - not the official communiqués - that will ultimately steer the currency,” he said. 

The ringgit ended the week higher against the US dollar, closing at 4.2285/2345 on Friday from 4.2900/2980 a week earlier.

The local note traded mostly lower against a basket of major currencies.

The ringgit appreciated versus the euro to 4.7985/8053 at Friday’s close from 4.8022/8112 at the end of last week. 

However, it dropped vis-à-vis the Japanese yen to 2.9502/9546 from 2.9470/9527, and inched down against the British pound to 5.7072/7153 from 5.7018/7125 a week earlier.

The ringgit traded mostly higher against ASEAN currencies.

It firmed versus the Singapore dollar to 3.2891/2940 on Friday from 3.3041/3105 a week before, improved against the Philippine peso to 7.65/7.66 from 7.71/7.73, and edged up against the Indonesian rupiah to 260.7/261.1 from 260.8/261.5 last week.

The local note fell versus the Thai baht to 12.9744/13.0012 from 12.9003/9318.

-- BERNAMA