KUALA LUMPUR, Sept. 27 (Xinhua) -- BMI Country Risk and Industry Research, a Fitch Solutions unit, has on Friday raised its end-2024 Malaysian ringgit forecast to 4.00 against U.S. dollar (USD), from 4.55.
The research house said in a note that this is reflecting the currency's robust performance in the third quarter of 2024.
It is noted that the ringgit has reversed its broad weakening trend since the start of 2024 to gain 12.1 percent in the third quarter, positioning it to be the best-performing emerging market currency in the region.
Over the medium term, BMI continues to hold a positive view on the ringgit as narrowing yield differentials with the United States and a relatively resilient growth outlook will bode well for the currency.
Looking beyond the six-month horizon, it forecasts the ringgit to strengthen by 9 percent in 2025, reaching 3.55/U.S. dollar by end-2025.
"We have revised lower our forecast for the Malaysian ringgit to average MYR3.80/USD, compared to MYR4.48/USD previously. The primary driver will be further policy loosening worth 125 basis points in 2025, which will take the Federal Reserve funds rate down to 3.00 percent by year end," it notes.
In contrast, BMI expects the Malaysian Central Bank to remain on hold at 3.00 percent through end-2025. ■
