Ringgit Expected to Maintain Bullish Trend Amidst Economic Data
The Ringgit is broadly anticipated to sustain its bullish performance in the coming week, although analysts caution that some inevitable profit-taking activities may occur following its recent notable appreciation against major global currencies.
Dr. Mohd Afzanizam Abdul Rashid, the chief economist at Bank Muamalat Malaysia Bhd, indicated that the market’s attention will be heavily focused on securing fresh leads, particularly the forthcoming announcement of the third quarter 2025 Gross Domestic Product (GDP) figures, which are scheduled for release on November 14.
He conveyed confidence that the GDP outcome is likely to align closely with the advance estimates, which currently project a growth rate of 5.2 percent.
Based on this macroeconomic outlook, Dr. Mohd Afzanizam suggested that the USD/MYR exchange rate is expected to hover within a relatively tight range, specifically between RM4.17 and RM4.19 during the next trading week.
On a week-over-week basis, the Ringgit demonstrated significant firmness against the US dollar, concluding its trading session at a stronger 4.1735/1775, marking a clear gain from the previous week’s closing rate of 4.1860/1930.
This overall strengthening trend of the local currency extended across a broad basket of other major world currencies, reflecting positive sentiment towards the Malaysian economy and its monetary policy outlook, positioning the Ringgit favorably heading into the critical GDP release.
Local Note Gains Ground Against Major Currencies
In a comprehensive review of its weekly performance, the local note exhibited a consistently upward trajectory against several key global currencies.
Notably, the Ringgit registered a strong gain against the British pound, appreciating to 5.4660/4713 from the previous week’s close of 5.5025/5117.
It also managed to strengthen visibly against the euro, closing at 4.8154/8200 compared to the prior week’s 4.8453/8534.
These movements indicate that despite the global economic uncertainty, the Malaysian currency is holding its own and attracting investor interest, likely buoyed by expectations surrounding the country’s GDP growth.
However, the Ringgit did experience a slight weakening against the safe-haven Japanese yen, trading at 2.7192/7220 compared to the previous week’s close of 2.7162/7210.
This minor softness against the yen is often attributed to sporadic shifts in global risk sentiment, which can temporarily favor assets perceived as having a lower risk profile, an independent factor that sometimes counters the general bullish trend of the Ringgit.
Crucially, the Ringgit demonstrated a prevailing upward trend when measured against its immediate ASEAN regional peers, signaling strong regional confidence in the Malaysian economy.
This positive regional performance is a significant indicator of the currency’s relative strength and stability within Southeast Asia.
Strong Regional Performance and Outlook for the Ringgit
The positive momentum of the Ringgit was particularly evident in its performance against other ASEAN currencies, which are often the most direct comparison for regional investors.
The Malaysian currency recorded a clear ascent against the Singapore dollar, strengthening to 3.2015/2048 from the previous week’s 3.2185/2241.
It also secured a gain against the Indonesian rupiah, trading at 250.0/250.4 compared to the preceding week’s 251.7/252.2.
Furthermore, the local note managed to strengthen against the Philippine peso, reaching 7.07/7.08 from 7.12/7.14, and notably firmed up against the Thai baht, trading at 12.8999/9174 compared to 12.9429/9702 previously.
This consistent strengthening across all major regional currencies solidifies the expectation of a continued bullish outlook, despite the possibility of short-term profit taking mentioned by economists.
The market is clearly awaiting the detailed third quarter GDP results, as the figure will serve as a foundational anchor for setting medium-term expectations for the Ringgit.
If the reported GDP growth confirms or exceeds the advance estimate of 5.2 percent, it would provide a solid macroeconomic basis for the central bank to maintain its current monetary stance, further supporting the Ringgit’s value.
The focus on systematic economic management and the favorable regional performance suggest that while global factors introduce volatility, the domestic fundamentals of the Malaysian economy remain robust, providing a steady footing for the Ringgit in the foreseeable future.
