Updated
Updated · Bloomberg · Jul 6
Malaysia's Ringgit Seen Rebounding to 3.95 per Dollar as Inflow Measures Lift Demand
Updated
Updated · Bloomberg · Jul 6

Malaysia's Ringgit Seen Rebounding to 3.95 per Dollar as Inflow Measures Lift Demand

3 articles · Updated · Bloomberg · Jul 6

Summary

  • RBC sees the ringgit strengthening to 3.95 per dollar by year-end after it finished June as Asia’s worst-performing currency.
  • Bank Negara Malaysia is stepping up measures to encourage companies to repatriate and convert overseas earnings, a move analysts say should boost foreign-exchange inflows.
  • Trade-surplus support, demand for Malaysian bonds and broader economic fundamentals are also expected to underpin the currency’s recovery.
  • ANZ is even more bullish, forecasting 3.80 per dollar — a level that would mark the ringgit’s strongest point since 2015.

Insights

As Malaysia emerges as a data center hub, can its currency's rise withstand pressures from global conflicts and US rate hikes?
With foreign funds at a record high, is the Ringgit a new safe haven or vulnerable to a sudden capital retreat?