Malaysian Ringgit Set to Test New High for 2026, Strategists Say

cn}k7fo}hfz68dyvgzt00[]c_media_dl_1.png BloombergArticle content(Bloomberg) — The Malaysian ringgit is likely to retest its year-to-date peak versus the dollar thanks to strong fundamentals, according to strategists.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe currency has rallied after sliding 4% in March as the Iran war sapped global risk sentiment. It’s back on track to test resistance at 3.88 per dollar, the level it reached just before the outbreak of the conflict, versus current levels around 3.95. The likes of Loomis Sayles & Co. and Deutsche Bank AG also see the currency continuing to strengthen.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe 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 centers,” he said.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentGains have been supported by strong exports and a surge in investment tied to Malaysia’s fast-growing data center industry. The country has emerged as Southeast Asia’s main data center hub, attracting companies from Oracle Corp. and Amazon.com Inc. to Alibaba Group Holding Ltd. and ByteDance Ltd.Article contentMalaysia’s economy expanded a faster-than-expected 5.5% in the first quarter after growing 5.2% 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.Article contentThe 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.Article contentArticle contentThe ringgit will revisit the 3.85 to 3.90 range versus the dollar this year, Goel said.Article contentThat dovetails with the view of Oversea-Chinese Banking Corp.’s Christopher Wong, who said 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.Article content“Fundamentals have not shifted,” he said. “Growth momentum remains intact, alongside higher commodity prices — and these drivers should continue to underpin foreign inflows.”Article contentThis week’s main economic events: Article contentMonday, April 20: Malaysia trade balance, China one- and five-year loan prime rate, New Zealand trade balance,Tuesday, April 21: New Zealand 1Q CPI, Taiwan export orders, South Korea 20-day exports/importsWednesday, April 22: Bank Indonesia rate decision, Japan trade balance,Thursday, April 23: BSP rate decision, South Korea 1Q GDP, Singapore CPI, Taiwan industrial productionFriday, April 24: Japan CPIArticle contentTrending US Seizes First Iranian Ship in Blockade, Imperiling Talks PMN Business Posthaste: Why Canadians might be doomed to suffer a 'new normal' for oil prices News Brace for gas price 'shock' in inflation numbers out Monday, say economists Economy Bank of Canada's Macklem says he has spoken to Fed chair about risks from Anthropic's Mythos AI model Banking 'The impacts are massive': U.S. tariff change pushes Canadian manufacturers to the brink Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. US Seizes First Iranian Ship in Blockade, Imperiling Talks PMN Business Posthaste: Why Canadians might be doomed to suffer a 'new normal' for oil prices News Brace for gas price 'shock' in inflation numbers out Monday, say economists Economy Bank of Canada's Macklem says he has spoken to Fed chair about risks from Anthropic's Mythos AI model Banking 'The impacts are massive': U.S. tariff change pushes Canadian manufacturers to the brink Economy