Kuala lumpur: The ringgit is anticipated to trade cautiously against the US dollar next week amidst mixed market sentiment, with strong domestic factors providing support to the local currency, though it remains influenced by global trade uncertainty.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, indicated that the ringgit versus the dollar is expected to range between RM4.20 and RM4.22 in the upcoming week. The recent advance gross domestic product (GDP) estimates for the third quarter were higher than expected, at 5.2 percent compared to street estimates of 3.9 percent. Additionally, Budget 2026 has highlighted the government’s commitment to maintaining fiscal discipline, sending positive signals to the market, which could be beneficial for the ringgit in the medium to long term.

Despite supportive domestic factors, external influences, particularly the ongoing US-China trade tension, continue to impact market sentiment. Over the past week, the ringgit weakened slightly against the US dollar, closing at 4.2240/2275 compared with 4.2200/2260 previously. It also eased against a basket of major currencies and its ASEAN peers, showing depreciation against the Japanese yen, the euro, the British pound, the Singapore dollar, the Thai baht, and the Philippine peso, while trading flat against the Indonesian rupiah.