The Malaysian Ringgit tracked regional currency losses last month amid the strength of the US Dollar. Economists at MUFG Bank analyze USD/MYR outlook.
Ringgit to remain largely range-bound in near term
We expect Ringgit to remain largely range-bound in near term.
Although a positive correlation with CNY could lend some support to Ringgit, this is unlikely to reverse the depreciation pressure coming from a strong Dollar and high US bond rates.
We expect a roughly 4% appreciation of Ringgit against the Dollar in 2024, due to reliance in economic activity, improving chips exports, and a weaker USD in medium term.
USD/MYR – Q4 2023 4.65 Q1 2024 4.60 Q2 2024 4.55 Q3 2024 4.50
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