KUALA LUMPUR: The ringgit is expected to continue strengthening against the US dollar, with its 2026 forecast revised to average around RM3.92 (2025 average: RM4.28), said MBSB Investment Bank Bhd.

An MBSB research note today said it will be underpinned primarily by a slight narrowing in the differential between Malaysia’s overnight policy rate (OPR) and the United States federal funds rate, as the Federal Open Market Committee’s latest dot plot continues to signal the potential for one more rate cut.