Kenanga sees ringgit strengthening to RM3.95 by year-end

KUALA LUMPUR: Kenanga Investment Bank has forecasted the Malaysian ringgit to strengthen to RM3.95 per US dollar by the end of the year. This prediction is backed by Malaysia's robust economic growth, a steady current account surplus, and a record high in foreign-currency deposits. Kenanga IB maintains a constructive outlook on the ringgit's medium-term performance, interpreting the recent strength in the US dollar as a short-term risk-premium move rather than the beginning of a long-term trend.

The ringgit opened higher against the US dollar on Monday, following Malaysia's impressive 6.0% GDP growth in the second quarter of 2026. At 8 am, the local currency strengthened to 4.0830/0890 from the previous day's close of 4.0840/0885. Bank Muamalat Malaysia's chief economist, Dr. Mohd Afzanizam, noted that Malaysia's economy has remained resilient, outperforming expectations following the latest GDP data.

The economy expanded by a stronger-than-anticipated 6.0% year-on-year in the April-June period, driven by robust household spending and increased exports despite concerns over the Iran war and external uncertainties. The stronger-than-expected performance has led several investment banks to revise their full-year GDP forecasts upwards.