Kuala lumpur: The ringgit is expected to trade within a narrow range of RM3.94 to RM3.96 against the US dollar next week. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid indicated that the Malaysian economy has been performing well, with growth propelled by both domestic and external demand, reaching 5.4 percent. This figure surpasses the advance estimate of 5.3 percent.

According to BERNAMA News Agency, Mohd Afzanizam Abdul Rashid noted that the latter half of the year could prove more challenging if the conflict in Iran and the blockade of the Strait of Hormuz persist. On Friday, Bank Negara Malaysia confirmed the 5.4 percent economic expansion, attributing it to resilient household spending supported by favourable labour market conditions and continued policy support.

Investment activity in Malaysia has been sustained by expenditures on machinery and equipment, structural investments, and the implementation of multi-year projects. The central bank reported that private consumption expanded by 4.7 percent in the first quarter of 2026, while private investment grew by 7.8 percent. Net exports surged by 13.5 percent, driven by steady export growth and a faster moderation in imports.

The ringgit's value against the US dollar fell slightly to 3.9515/9580 on Friday, compared to 3.9185/9230 the previous week. However, the local currency showed strength against a basket of major currencies this week. It appreciated versus the British pound, euro, and Japanese yen, and also traded higher against its ASEAN peers, including the Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.