Analysts lowers end-2024 ringgit outlook to RM4.55/$ from RM4.40/$
BMI Country Risk & Industry Research, an independent research house, revised its end-2024 ringgit forecast to RM4.55/US$, citing the currency’s performance in 1Q 2024.
Ringgit outlook
Despite a short-term weakening trend, BMI maintains a positive long-term outlook, expecting the ringgit to strengthen to RM4.40/US$ by end-2025.
Factors driving this include policy loosening by the US Federal Reserve and improvements in Malaysia’s external position, supported by rising oil prices and increasing services exports.
Resilient foreign direct investment inflows also contribute to the ringgit’s strength. However, risks of a weaker ringgit persist due to challenges in the electronics sector and potential changes in government subsidies and price controls.
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