The ringgit's recent performance has been a hot topic, and it's time to dive into the details! The local currency's value has been on a rollercoaster ride, reaching a near six-year high against the US dollar, but here's where it gets controversial...
Last week, the ringgit traded mostly higher, opening at 4.09 and closing at 4.07. This upward trend caught the attention of economists, with Bank Muamalat's Dr. Mohd Afzanizam Abdul Rashid suggesting that the ringgit has entered an overbought phase, potentially leading to profit-taking activities.
But what does this mean for the upcoming week? Experts predict that the ringgit will experience some profit-taking, hovering between RM4.07 and RM4.09. The focus will be on the US gross domestic product for the third quarter of 2025, expected to be released on December 23rd.
Earlier in the week, key US data, including nonfarm payrolls and the Consumer Price Index (CPI), influenced the ringgit's movement. The US non-farm payrolls showed a positive increase, while inflation came in below expectations.
On a weekly basis, the ringgit strengthened against the US dollar, closing at 4.0740/0785. It also performed well against other major currencies, gaining against the Japanese yen, British pound, and euro.
The ringgit's performance against its ASEAN peers was mostly positive, with gains against the Indonesian rupiah, Singapore dollar, and Thai baht. However, it slipped slightly against the Philippine peso.
So, what's next for the ringgit? Will it continue its upward trajectory, or will profit-taking activities impact its value? And this is the part most people miss... the impact of global economic indicators on local currencies.
What are your thoughts on the ringgit's future? Do you think it will maintain its strength, or are there potential challenges ahead? Feel free to share your insights and predictions in the comments below! We'd love to hear your take on this economic journey.
