Kuala lumpur: The ringgit is anticipated to trade within a limited range of RM3.95 to RM3.97 against the US dollar in the upcoming week, amidst a shortened trading week. Bank Muamalat Malaysia Bhd's chief economist, Mohd Afzanizam Abdul Rashid, highlighted the focus on the United States' personal consumption expenditures (PCE) inflation data for April, which is expected to influence the currency's movement.
According to BERNAMA News Agency, the PCE is likely to reflect elevated levels due to increased petrol prices in April. Additionally, the upcoming Aidiladha celebration on Wednesday contributes to the holiday-shortened week, reinforcing the expectation of a narrow trading range for the ringgit.
Mohd Afzanizam noted that while the ringgit might exhibit limited movement, Malaysia's macroeconomic indicators remain stable. There has been a notable improvement in the current account balance, which widened to 3.0% of GDP in the first quarter of 2026 from 0.5% in the previous quarter. Fiscal deficits have also narrowed, reducing to 3.3% of GDP in the first quarter of 2026 from 4.5% in the same period the previous year.
Additionally, Malaysia's foreign exchange reserves have increased to US$129.5 billion as of May 15, 2026, up from US$125.5 billion at the end of 2025. On Friday, the ringgit was lower against the US dollar at 3.9655/9700 compared to 3.9515/9580 the previous week.
The local currency exhibited varied performance against major currencies throughout the week. It depreciated against the British pound to 5.3245/3305 from 5.2749/2835, appreciated against the euro to 4.6012/6064 from 4.5948/6024, and gained against the Japanese yen to 2.4925/4954 from 2.4927/4968.
In relation to its ASEAN peers, the ringgit experienced a mixed trend. It strengthened against the Indonesian rupiah to 223.8/224.1 from 224.5/225.0 but weakened against the Singapore dollar to 3.0985/1023 from 3.0871/0927. It also declined against the Thai baht to 12.1421/1611 from 12.0989/1247 and the Philippine peso to 6.42/6.44 from 6.40/6.41.
The financial market will observe closures on May 27 for the Aidiladha public holiday, resuming on May 28. Additionally, it will be closed on June 1 and 2 for the King's Birthday and Wesak Day holidays, before reopening on June 3.