KUALA LUMPUR, Feb 28, 2026 — The Malaysian ringgit is forecast to trade in a narrow range against the US dollar next week, likely between RM3.88 and RM3.90, as currency markets brace for key economic data from the United States and further developments in ongoing diplomacy between Washington and Tehran.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that traders will be watching closely for upcoming US labour market data, including Nonfarm Payrolls (NFP) and the unemployment rate, which are expected to influence expectations around the Federal Reserve’s monetary policy path.
In addition to US data, the markets are also focused on renewed diplomatic efforts between the United States and Iran. Officials from both countries are set to resume talks in Vienna next week after a recent round in Geneva, but no definitive agreement has been reached yet. These geopolitical developments could affect risk appetite and demand for the greenback, thereby influencing ringgit movements.
Dr Mohd Afzanizam also noted that investors will be watching the Bank Negara Malaysia Monetary Policy Committee meeting scheduled for March 5, where the central bank is widely expected to keep the Overnight Policy Rate (OPR) unchanged. This policy stance is anticipated to provide some stability to the local currency in the near term.
Market data showed that the ringgit finished the week firmer against the US dollar, closing at 3.8910/8960 compared with 3.8995/9055 the previous Friday.
The local currency also gained ground against several major currencies this week. It strengthened against the Japanese yen and the British pound, though it eased versus the euro. However, the ringgit traded lower against some of its ASEAN peers, including the Singapore dollar, Indonesian rupiah, Philippine peso, and Thai baht in the latest session.
Analysts say the relatively stable range reflects a mix of global uncertainties and domestic economic resilience, with traders preferring to await fresh data before making significant directional bets on the ringgit.
