Malaysian ringgit set to test new high for 2026, strategists say
Gains have been supported by strong exports and a surge in investment tied to Malaysia’s fast-growing data centre industry
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[SINGAPORE] The Malaysian ringgit is likely to retest its year-to-date peak versus the US dollar thanks to strong fundamentals, according to strategists.
The currency has rallied after sliding 4 per cent in March as the Iran war sapped global risk sentiment. It’s back on track to test resistance at 3.88 per US dollar, the level it reached just before the outbreak of the conflict, versus current levels around 3.95. The likes of Loomis Sayles and Deutsche Bank also see the currency continuing to strengthen.
The ringgit can push to fresh 2026 highs, according to Hassan Malik, a global macro strategist at Loomis Sayles, an affiliate of Natixis Investment Managers. “Malaysia offers a relatively rare mix of resilient growth, credible macro management, distance from key geopolitical flashpoints, and a diversified economy spanning oil to data centres,” he said.
Gains have been supported by strong exports and a surge in investment tied to Malaysia’s fast-growing data centre industry. The country has emerged as South-east Asia’s main data centre hub, attracting companies from Oracle and Amazon.com to Alibaba Group Holding and ByteDance.
Malaysia’s economy expanded a faster-than-expected 5.5 per cent in the first quarter after growing 5.2 per cent last year, its fastest pace since 2022, with exports a key driver. Investors will look to trade data due Monday for clues on whether the US-Iran conflict has begun to weigh on one of the ringgit’s main supports.
The country’s robust cyclical fundamentals going into the conflict, status as a net energy exporter, and linkages to the global tech capex cycle put the ringgit at a relative advantage within the region, according to Sameer Goel, Deutsche Bank’s global head of emerging markets and Apac research.
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The ringgit will revisit the 3.85 to 3.9 range versus the US dollar this year, Goel said.
That dovetails with the view of OCBC’s Christopher Wong, who said that it should find support around 3.90 to 3.92, with a sustained break lower opening the door to a retest of this year’s low.
“Fundamentals have not shifted,” he said. “Growth momentum remains intact, alongside higher commodity prices – and these drivers should continue to underpin foreign inflows.” BLOOMBERG
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