Ringgit to appreciate to RM 4.50 against the US dollar by the end of 2024

MIDF research has projected appreciation of the Malaysian Ringgit to RM 4.50 by year’s end, setting an optimistic tone for the currency in 2024. This is due to the fact that MIDF research predicts a turnaround and cites other factors for the currency’s rise.

A major reason for the optimistic view is that interest rate reduction by the Federal Reserve are expected to begin in 2024, and Bank Negara Malaysia (BNM) is expected to keep the Overnight Policy Rate (OPR) at 3.00 percent.The current state of affairs stimulates more capital inflows into emerging markets.

The ringgit’s devaluation was mostly caused by the strong US dollar, which also contributed to the FED’s continued postponement of its interest rate pause. Likewise, China’s economic uncertainties and external factors have contributed to the weakening of the Ringgit. The BNM reports that the value of the Malaysian Ringgit in relation to the US dollar has dropped to RM 4.80. 

Despite the depreciation of the Ringgit currency, the rate of inflation has dropped to 1.5%, and in 2023, the total amount of investments climbed to 23% (or RM329.5 billion).However, the bank stated that the currency is undervalued and does not reflect the country’s strong fundamentals.


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