<div id="readability-page-1"><div><p>[SINGAPORE] The Malaysian ringgit is likely to retest its year-to-date peak versus the US dollar thanks to strong fundamentals, according to strategists.</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p><div><div><div><p>SEE ALSO</p><div><div><div><div><p><img height="640" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/b21540e44710f1b13bb82284cf4eb12ae76d41e3eb33b1736435fc16a3da7845/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="960" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/b21540e44710f1b13bb82284cf4eb12ae76d41e3eb33b1736435fc16a3da7845/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Ringgit hits strongest level versus Singapore dollar since 2021</span></h3><p></p></div></div><div><div><div><p><img height="3648" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/411ab56953284038f2a59a2421aefa0ed69cafa15a042669ce4b905edb87762f/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="5472" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/411ab56953284038f2a59a2421aefa0ed69cafa15a042669ce4b905edb87762f/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Ringgit’s rebound tests Malaysian exporters as Singdollar remains resilient</span></h3><p></p></div></div><div><div><div><p><img height="2604" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/92562a22cf0065787b30af7b5ebc89d39a925b8f4e374f1d5c2d1333040b5863/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="3372" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/92562a22cf0065787b30af7b5ebc89d39a925b8f4e374f1d5c2d1333040b5863/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Singdollar appreciated at average rate of 1.3% against ringgit over 2020 to 2025: Alvin Tan</span></h3><p></p></div></div></div></div></div><div><h3>Navigate Asia in<br/>a new global order</h3><p>Get the insights delivered to your inbox.</p></div></div><p>The ringgit will revisit the 3.85 to 3.9 range versus the US dollar this year, Goel said.</p><p>That dovetails with the view of OCBC’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.</p><p>“Fundamentals have not shifted,” he said. “Growth momentum remains intact, alongside higher commodity prices – and these drivers should continue to underpin foreign inflows.” BLOOMBERG</p><div><p>Decoding Asia newsletter: your guide to navigating Asia in a new global order. <span>Sign up here to get Decoding Asia newsletter.</span> Delivered to your inbox. Free.</p></div></div></div>

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<p>The Malaysian ringgit is expected to retest its year-to-date peak against the US dollar, driven by strong fundamentals. After a 4% decline in March due to global risk sentiment, it is poised to test resistance at 3.88 per dollar. Strategists from Loomis Sayles and Deutsche Bank predict further strengthening, citing Malaysia's resilient growth, credible macro management, and a diversified economy. The economy grew 5.5% in Q1, supported by strong exports and investments in the data center industry. The ringgit is projected to revisit the 3.85 to 3.9 range this year, with support around 3.90 to 3.92.</p>

Malaysian ringgit set to test new high for 2026, strategists say