MIDF expects ringgit at 4.20 against US dollar by year end
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MIDF Research expects the ringgit to appreciate towards 4.20 against the US dollar by year end. The strengthening of the ringgit will be supported by the expected decline in interest rate differentials, as the US Federal Reserve (Fed) is expected to lower its interest rates, while Bank Negara Malaysia is likely to maintain the overnight policy rate at 3%. Concerns about recession risk in the US and prolonged weakness in global trade and manufacturing activities could limit the ringgit's prospects. The ringgit outlook may be affected by continued strength in the US dollar if the Fed delays rate cuts to a later period given the resilience in the US economy and elevated inflation. The return of appetite for riskier assets and recovery in regional trade are expected to support emerging-market currencies.



https://theedgemalaysia.com/node/699888