USD/MYR: Ringgit expected to appreciate roughly 4% in 2024 – MUFG

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