Ringgit Seen Averaging RM4.01 In 2026, Easing To RM4.03 By End-2026

KUALA LUMPUR, Aug 4 (Bernama) -- The ringgit is expected to average around RM4.01 against the US dollar in 2026 and potentially ease to RM4.03 by end-2026, underpinned by expectations of fund flows returning to emerging markets, including Malaysia, in the latter part of the year.

In a note, MBSB Investment Bank Bhd (MBSB IB) said it foresees the ringgit’s trajectory remaining weak, at least in the short run, on the back of heightened uncertainties, volatility in the financial markets and continued expectations of a rate hike by the Federal Reserve (Fed), which would support the US dollar.

“Heightened global geopolitical tensions and sticky inflation have driven safe-haven flows into the US, and higher inflation also supports the Fed’s higher-for-longer interest-rate stance.

“On the flip side, strong export growth and a widening trade surplus continue to anchor fundamental support for the ringgit,” it said.

Looking ahead, MBSB IB expects any further upside in the currency to depend heavily on easing inflation pressures, specifically if any future Fed action remains a limited 'recalibrating hike' rather than an aggressive tightening cycle.

On that note, it added that elevated US inflation risks and ongoing geopolitical tensions remain the principal wildcards in its macroeconomic outlook.

-- BERNAMA