Ringgit near eight-year high, seen holding around 3.90 next week on growth optimism and softer US dollar
KUALA LUMPUR, Feb 14, 2026 – The ringgit is expected to maintain its firm footing around the 3.90 level against the US dollar next week, as strong domestic growth momentum and continued US dollar softness underpin market sentiment.
The local currency’s move toward levels last seen in April 2018 reflects renewed investor confidence in Malaysia’s macroeconomic fundamentals.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit, currently hovering near RM3.90, could test its immediate technical resistance around RM3.87 if buying interest persists.
“Positive sentiment anchored on robust economic growth is likely to shape trading direction next week, providing near-term support for the ringgit,” he said.
Beyond domestic strength, the US Dollar Index (DXY) slipping below the 97 mark has created additional room for emerging-market currencies to appreciate.
Kenanga Investment Bank Bhd said sustained US dollar weakness remains the primary catalyst behind the ringgit’s rally, as global investors diversify holdings and monetise previous dollar gains.
US inflation and Fed signals in focus
According to Kenanga IB’s research note, markets are closely monitoring the upcoming Federal Open Market Committee (FOMC) minutes and US inflation readings, which will guide expectations on future Federal Reserve rate decisions.
If US inflation fails to accelerate meaningfully or real yields do not rise decisively, the greenback may struggle to stage a sustained recovery.
Bank Negara Malaysia earlier reported that the ringgit strengthened 3.9 per cent against the US dollar in the fourth quarter of 2025, supported by both external developments and domestic resilience.
Earlier this week, the currency touched 3.8995 against the greenback, approaching its strongest level in nearly eight years.
On a week-on-week basis, the ringgit closed firmer at 3.9060/9115 compared with 3.9440/9525 the previous week.
The ringgit also posted gains against the euro, British pound, Singapore dollar, Indonesian rupiah and Philippine peso, although it eased slightly versus the Japanese yen and Thai baht.
Analysts believe that unless US data decisively strengthens the dollar outlook, Malaysia’s currency could retain its upward bias in the near term, supported by solid growth fundamentals and stable domestic conditions.
-wilayah.com.my
