KUALA LUMPUR (July 10) β The Malaysian ringgit is expected to strengthen and close the year at around 3.90 against the US dollar, driven by positive shifts in external sector drivers, according to BIMB Securities Research.
In a note on Friday, the research house stated that external factors are more influential than domestic political uncertainties in determining the ringgit's trajectory. BIMB maintained its year-end forecast of 3.90, citing improved global trade conditions and a weaker US dollar.
The ringgit has traded in a range of 4.10 to 4.30 against the greenback in recent months. BIMB's forecast implies a potential appreciation of about 5% from current levels.
Analysts noted that the ringgit's performance will also depend on the pace of US interest rate cuts and China's economic recovery, both of which are key external drivers for the Malaysian economy.
