Ringgit Expected To Trade Between RM3.90 And RM3.95 Next Week Ahead Of Trump-Xi Meeting
Investors Closely Watching Global Tensions and Malaysia’s Upcoming GDP Announcement
KUALA LUMPUR — The ringgit is expected to trade within the RM3.90 to RM3.95 range against the US dollar next week as investors worldwide focus on the highly anticipated meeting between Donald Trump and Xi Jinping in Beijing.
The upcoming talks are seen as a crucial development in efforts by the world’s two largest economies to stabilise diplomatic and economic relations amid rising geopolitical and trade tensions that have increasingly influenced global financial markets.
International reports indicated that Donald Trump is scheduled to visit China next week for discussions covering major issues including trade disputes, tensions surrounding Taiwan and the ongoing conflict involving Iran, which continues to impact the global economy and energy markets.
Chief economist at Bank Muamalat Malaysia Berhad, Mohd Afzanizam Abdul Rashid, said investors are optimistic that diplomatic engagement between the two leaders could contribute to easing tensions linked to the US-Iran conflict.
According to him, markets are hoping the meeting may serve as a positive turning point that could reduce geopolitical uncertainty and improve investor confidence globally.
“However, developments in West Asia will remain the primary factor capable of shifting market direction abruptly,” he said.
He noted that any escalation involving geopolitical conflicts or disruptions to global energy supplies could quickly affect market sentiment, including regional currencies such as the ringgit.
On the domestic front, investors are also expected to closely monitor Malaysia’s first-quarter 2026 gross domestic product (GDP) figures, which will be released by Bank Negara Malaysia and the Department of Statistics Malaysia on May 15.
Several economists expect Malaysia’s economy to record growth of approximately 5.3 per cent during the first quarter, supported by broad-based expansion across key sectors including manufacturing, services and construction.
The stronger economic performance is expected to provide support for the ringgit over the medium term despite continued uncertainties in the global market arising from geopolitical tensions and inflationary pressures.
At the close of trading this week, the ringgit strengthened against the US dollar to 3.9185/9230 compared with 3.9690/9740 recorded in the previous week.
The local currency also posted stronger performance against several major global currencies during the week.
The ringgit appreciated against the British pound to 5.3354/3416 from 5.3593/3661 previously and strengthened against the euro to 4.6121/6174 from 4.6417/6476.
However, it weakened slightly against the Japanese yen to 2.5010/5040 compared with 2.4907/4942 in the previous week.
Against regional ASEAN currencies, the ringgit also recorded mostly stronger performances.
It improved against the Thai baht to 12.1640/1844 from 12.1711/1932, strengthened against the Indonesian rupiah to 225.4/225.7 from 228.7/229.2 and edged higher against the Singapore dollar to 3.0910/0948 from 3.1061/1103.
Nevertheless, the local currency slipped marginally against the Philippine peso to 6.46/6.47 from 6.45/6.47 previously.
Market analysts believe investors will remain cautious next week as they continue monitoring geopolitical developments, crude oil prices and economic signals from both the United States and China, all of which are expected to significantly influence global financial markets and currency movements.
-wilayah.com.my
