The ringgit could face profit-taking next week after reaching a near six-year high of RM4.0740 against the US dollar, influenced by key US economic data.
KUALA LUMPUR: The ringgit is poised for potential profit-taking activity next week after strengthening to a near six-year high against the US dollar.
The local currency is expected to trade between RM4.07 and RM4.09 against the greenback following its recent surge.
It closed at RM4.0740/0785 per US dollar on Friday, a level last seen on January 15, 2020.
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Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said technical indicators suggest the ringgit has entered overbought territory.
“Next week, the focus would be on the US gross domestic product for the third quarter of 2025 expected on Dec 23,” he told Bernama.
The ringgit’s movement this week was largely driven by key US economic data, including nonfarm payrolls and inflation figures.
US non-farm payrolls rose by 64,000 in November after contracting in October, while the unemployment rate climbed to 4.6%.
US inflation in November came in at 2.7%, below the consensus estimate of 3.1%, with core inflation moderating to 2.6%.
On a weekly basis, the ringgit strengthened against the US dollar from last Friday’s close of RM4.0945/1005.
The local note also traded higher against a basket of major currencies.
It strengthened against the Japanese yen to 2.5909/5940 from 2.6264/6304 a week earlier.
The ringgit climbed vis-a-vis the British pound to 5.4514/4574 from 5.4789/4869 previously.
It appreciated versus the euro to 4.7715/7767 from 4.8037/8107.
The ringgit was mostly higher against its ASEAN peers.
It gained versus the Indonesian rupiah to 243.2/243.6 from 245.9/246.4.
The local currency increased against the Singapore dollar to 3.1515/1553 from 3.1701/1750.
It improved vis-a-vis the Thai baht to 12.9428/9620 from 12.9589/9845.
However, the ringgit slipped slightly against the Philippine peso to 6.94/6.95 from 6.93/6.94 previously. – Bernama
