KUALA LUMPUR, Dec 20 — The ringgit is expected to experience profit-taking next week, hovering between RM4.07 and RM4.09 against the US dollar after hitting a near six-year high yesterday.

The local currency traded mostly higher this week, opening at the 4.09 level and trending upward before settling at 4.07 at Friday’s close.

At 6 pm yesterday, the ringgit rose to 4.0740/0785 versus the greenback from 4.0840/0880 at Thursday’s close. The level was last seen on Jan 15, 2020, when the ringgit closed at 4.0740 to the US dollar.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that judging from technical indicators, the ringgit has entered into overbought territory which could lead to profit-taking activity. 

“Next week, the focus would be on the US gross domestic product for the third quarter of 2025 (3Q 2025) expected on Dec 23,” he told Bernama. 

Earlier this week, the local currency was mainly influenced by key US data, including the nonfarm payrolls and Consumer Price Index (CPI), which were expected to provide a clearer direction on the US monetary policy outlook. 

It was reported that US non-farm payrolls rose by 64,000 in November after contracting in October, while the unemployment rate climbed to 4.6 per cent amid higher labour force participation, moderating wage growth and slower retail sales.

Meanwhile, US inflation in November came in below expectations at 2.7 per cent compared with the consensus estimate of 3.1 per cent. Core inflation moderated to 2.6 per cent from 3.0 per cent in September.

On a weekly basis, the ringgit strengthened against the greenback, closing higher at 4.0740/0785 compared with 4.0945/1005 at the end of last week.

The local note traded higher against a basket of major currencies.

It strengthened against the Japanese yen to 2.5909/5940 from 2.6264/6304 a week earlier, climbed vis-a-vis the British pound to 5.4514/4574 from 5.4789/4869 previously, and appreciated versus the euro to 4.7715/7767 from 4.8037/8107.

The ringgit was mostly higher against its Asean peers.

It gained versus the Indonesian rupiah to 243.2/243.6 from 245.9/246.4 at the previous Friday’s close, increased against the Singapore dollar to 3.1515/1553 from 3.1701/1750 a week earlier, and improved vis-a-vis the Thai baht to 12.9428/9620 from 12.9589/9845. 

However, the local currency slipped against the Philippine peso to 6.94/6.95 from 6.93/6.94 previously. — Bernama