Malaysian ringgit to appreciate to 4.20-4.25 against USD by year end: think tank

KUALA LUMPUR, Aug. 26 (Xinhua) — The Malaysian Institute of Economic Research (MIER) has on Monday foreseen the Malaysian ringgit to appreciate to 4.20-4.25 against the U.S. dollars by the end of 2024, from 4.59 at the end of 2023.
The Malaysian think tank said in a note that the recent appreciation of the ringgit against the dollar is expected to continue in 2024 as the ringgit stands to benefit from more than just U.S. monetary policy.
Domestic factors, such as fiscal reforms aimed at reducing the budget deficit and strong gross domestic product (GDP) growth expected to reach if not exceed 5 percent in 2024, could also support the currency, it said.
Besides, it said solid foreign direct investment, repatriation of funds from government-linked companies, and a sustained current account surplus driven by robust exports in electronics, tourism, and services further strengthen the outlook for the ringgit.
Foreign investment into Malaysia’s equity and bond markets is another positive factor for the currency, it added. ■