Oddbean

Ringgit might hit 4.25 per US dollar by year-end, but more than US rate cuts will affect its strength ========== The ringgit, Asia's best-performing currency in 2024, could reach 4.25 against the US dollar by year-end, influenced by US Federal Reserve rate cuts starting this week; the extent of the cuts, Fed's guidance, US economic strength, and upcoming presidential elections are key factors. Bank Muamalat's chief economist Dr. Mohd Afzanizam Abdul Rashid notes that narrowing interest rate gaps will drive ringgit appreciation, while economist Dr. Geoffrey Williams states the rate cut's impact is already priced in. A 50 basis point cut could strengthen the ringgit further, while a 25 basis point cut may stabilize it. Bank Negara Malaysia's OPR is expected to remain at 3.0%. Stephen Innes from SPI Asset Management highlights that US political risks, especially if Trump wins, could challenge the ringgit's strength. The ringgit opened at 4.2930 and settled at 4.294, rebounding 12% from its lowest point of RM4.79 this year. #Ringgit #UsDollar #FederalReserve #Economy #Malaysia #InterestRates #Forex #BankNegara #PoliticalRisk #Currency https://www.nst.com.my/business/economy/2024/09/1107031/ringgit-might-hit-425-us-dollar-year-end-more-us-rate-cuts-will