Kuala lumpur: The ringgit is anticipated to maintain stability within a narrow trading range against the US dollar next week as external factors continue to dominate market dynamics.

According to BERNAMA News Agency, IPPFA Sdn Bhd's investment strategy director and country economist, Mohd Sedek Jantan, noted that while Malaysia's growth profile provides a solid fundamental foundation, the short-term trajectory of the ringgit will be significantly influenced by the fluctuations in the US dollar, oil price volatility, and evolving geopolitical developments.

Brent crude oil prices are projected to stay above US$90 per barrel, which could provide a supportive terms of trade backdrop, helping to stabilize the currency. However, any adverse geopolitical developments, particularly those stemming from policy signals or announcements by Donald Trump concerning West Asia, could swiftly alter market sentiment, thereby reinforcing the strength of the dollar and introducing potential downside risks to the ringgit.

The ringgit appreciated against the US dollar, closing at 3.9505/9545 on Friday, compared to 3.9625/9680 at the end of the previous trading week. However, the local currency traded predominantly lower against a basket of major currencies this week. It weakened against the British pound to 5.3454/3508 from 5.3248/3322, and slipped against the euro to 4.6588/6635 from 4.6401/6465, while it strengthened against the Japanese yen, moving to 2.4838/4865 from 2.4882/4918 a week ago.

Conversely, the ringgit performed better against its ASEAN peers. It appreciated against the Singapore dollar to 3.1053/1086 from 3.1093/1139, strengthened against the Thai baht to 12.3084/3274 from 12.3289/3525, expanded against the Indonesian rupiah to 229.8/230.1 from 231.6/232.0, and elevated against the Philippine peso to 6.58/6.59 from 6.60/6.62 previously.