Ringgit Expected to Strengthen Further: New Target RM4.10–RM4.15 Against the US Dollar Next Week

Kuala Lumpur, El Sky News – The strengthening momentum of the Malaysian Ringgit (RM) is expected to continue into next week, supported by improving global market sentiment and growing confidence in the local currency. Financial analysts and forex market experts predict that the Ringgit could trade within a stronger range of RM4.10 to RM4.15 against the US Dollar (USD).

This positive outlook signals that the Ringgit is enjoying strong tailwinds from evolving international economic conditions and Malaysia’s solid domestic recovery.

Supportive Factors From the US and Domestic Economy

According to several local investment banks, confidence in the Ringgit is being driven by two key factors:

1. Expectations of a More Flexible US Monetary Policy
Markets are increasingly anticipating a more flexible stance from the US Federal Reserve (The Fed). Signs of easing inflation in the United States have fuelled speculation that the Fed may hold interest rates steady—or even begin considering rate cuts in the near term.

This has reduced the attractiveness of the USD, making the Ringgit and other Asian emerging-market currencies more appealing to foreign investors. The inflow of short-term funds is providing solid technical support for the Ringgit’s value.

2. Strong Economic Fundamentals in Malaysia
On the domestic front, Malaysia’s economic fundamentals remain robust. Strong Gross Domestic Product (GDP) growth and sustained domestic demand recorded in the third quarter of the year have boosted confidence in the country’s long-term prospects.

Additionally, as a net exporter of commodities, Malaysia is benefiting from stable or improving global prices of key commodities such as crude oil and palm oil. Higher export revenues increase the supply of foreign currency in the financial system, further strengthening the Ringgit.

Implications for Businesses and the Public

The Ringgit’s projected strengthening to the RM4.10–RM4.15 range against the USD brings several positive implications:

• Businesses and Importers: Lower import costs for goods and raw materials may help ease inflationary pressures.
• Travellers: A stronger Ringgit increases the purchasing power of Malaysians abroad.
• Debt Management: The cost of USD-denominated debt—particularly for large corporations and the government—will decline.

Analysts believe that as long as Malaysia’s economic growth remains on its projected trajectory and no major geopolitical shocks occur, the Ringgit is likely to end 2025 on a stronger note.