What’s UP with Ringgit? Some latest news and one great prediction

What’s UP with Ringgit? Some latest news and one great prediction

I was pleasantly surprised when I exchanged some ringgit into USD in August. The rates were to my favour versus a year ago in August 2024. Ringgit has strengthened and it really helped when I was buying a Tumi handbag in the outlet in Philadelphia, USA. It was also a happy affair when I exchanged money to travel to Japan way bank in Japan. This has continued when I exchanged some AUD to go Melbourne. So, is Ringgit really going to do well for the foreseeable future? What do analysts say?

Latest news first, Ringgit is up by a tiny little bit versus US$

Article in malaymail.com The ringgit ended marginally higher against the greenback today as investors turned cautious ahead of the release of the United States (US) Consumer Price Index (CPI) data.

At 6pm, the ringgit appreciated to 4.2210/2255 against the US dollar from 4.2250/2285 at Thursday’s close. Article in malaymail.com

RM4 to US$1 is possible by end 2025, says BNM Governor

Article in nst.com.my. The ringgit could appreciate to RM4 against the US dollar by the end of the year with Malaysia’s bright economic prospects, Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said today.

“It could be (reached), with bright economic prospects,” he said when asked about that possibility after launching the Global Islamic Finance Forum (GIFF) 2025 officiated by Prime Minister Datuk Seri Anwar Ibrahim here today. Article in nst.com.my.

RM4.08 to US$1 is the forecast by Kenanga. Why?

Article in businesstoday.com.my Kenanga maintains its year-end 2025 forecast for the ringgit at 4.08/USD, assuming stable domestic conditions. In the near term, the ringgit is expected to trade within the 4.15–4.20 range. The local currency’s momentum was supported by a weaker greenback, with the US Dollar Index (DXY) slipping below 97.0 ahead of the US Federal Reserve’s policy meeting. The Fed delivered a 25-basis-point rate cut and signalled the likelihood of two more cuts this year. Article in businesstoday.com.my

RM3.93 to US$1 forecasted by mid-2026 by MARC Chief Economist

Article in thesun.my. The Malaysian ringgit is expected to rise to RM3.93 against the US dollar by mid-2026, supported by solid domestic economic fundamentals, fiscal reforms, and a softer greenback.

Malaysian Rating Corporation Bhd chief economist Dr Ray Choy said the local currency has weathered the storm in 2025 despite elevated geopolitical and trade tensions, reflecting confidence in Malaysia’s economic strength and reform trajectory. Article in thesun.my.

Ringgit was best performer in 2024, it should be best performing in 2025

Article in nst.com.my. The ringgit has remained strong and stable, placing it among the best-performing currencies in Asia for 2025, said Prime Minister Datuk Seri Anwar Ibrahim.

He also said the currency strengthened against regional currencies, gaining 9.0 per cent against the Indonesian rupiah, Philippine peso (6.6 per cent), Chinese renminbi (3.5 per cent), Japanese yen (1.5 per cent) and Singapore dollar (0.8 per cent).  Article in nst.com.my.

Actually… if the economy has trade surplus, the currency should strengthen and vice-versa…

This is not always true though. Depending on the country, it would usually be skewed towards some safer haven when there’s any world uncertainty. If the country has a higher reserves and has shown to be less volatile, more funds may prefer it when there are too many uncertainties in the world. Most analyst would tell us that Ringgit is undervalued. Yet, it has not appreciated much. Probably it’s also that sentiment that ringgit is not yet a major currency. Hopefully all the above forecasts would come true. Then, all of us can travel ‘like a bird’ when we go overseas… ‘cheap… cheap… cheap…’

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