KUALA LUMPUR: The ringgit is expected to continue strengthening against the US dollar next week, supported by favourable interest rate differentials and stronger domestic economic fundamentals. Although it ended the week slightly lower against the greenback at 4.0515/0560 compared with 4.0470/0535 last Friday, the outlook remains positive, with the local currency projected to appreciate to 3.95 by year-end. MBSB Investment Bank Bhd (IB) said in a research note that the ringgit would mostly average at 4.00 to the US dollar this year. It said the local currency would be supported by expectations that the interest rate differential between the overnight policy rate (OPR) and the US Federal Funds rate will continue to narrow throughout the year. This should translate into sustained appreciation of the ringgit against the US dollar,” he told Bernama.

Source: The Star January 03, 2026 09:43 UTC