KUALA LUMPUR, 28 December 2025 — The Malaysian ringgit (MYR) is forecast to trade within a tight range against the U.S. dollar (USD) in the upcoming holiday-shortened week, as limited market activity and a lack of fresh economic drivers are expected to keep currency moves subdued.
Analysts and economists said the USD/MYR exchange rate is likely to hover around 4.03 to 4.05 next week, reflecting cautious sentiment and thinner trading volumes as global markets observe year-end holidays and the New Year. The narrow range outlook comes amid a holiday-thinned trading calendar, which typically reduces liquidity and limits major market-moving developments.
What’s Driving the Moody Market
Market watchers note several factors behind the subdued ringgit outlook:
- Holiday Season Slowdown: With many investors and traders away for Christmas and New Year celebrations, market turnover and new data releases are expected to be limited, damping volatility.
- Lack of Fresh Catalysts: Key local and global economic indicators that normally influence currency sentiment, such as central bank policy signals or major macroeconomic data, are absent or delayed due to the holiday calendar.
- Recent Strength, But Resistance at 4.00: After the ringgit recently reached near five-year highs against the dollar earlier in the holiday trade, it has faced resistance around the psychologically significant RM4.00 level. The rally’s momentum has eased, reinforcing the anticipated narrow trading corridor.
Analysts also point out that seasonal strength in the U.S. dollar and expectations for resilient U.S. economic performance could limit significant appreciation for the ringgit in the near term. However, with few catalysts expected in the coming days, trading patterns are likely to remain contained until markets resume full activity in January 2026.
The Ledger Asia View
A narrow trading range in the ringgit against the U.S. dollar is a typical year-end phenomenon when markets thin out and investors adopt a wait-and-see stance amid holiday closures. For Malaysian exporters, importers and currency traders, stability within a defined range offers predictability in the short term, but the broader direction of the ringgit will hinge on global monetary policy shifts and fresh economic data once regular trading resumes in 2026.
