Ringgit to move up to RM4.22 level in 2024?

Ringgit to move up to RM4.22 level in 2024?

CIMB Group Holdings Bhd is predicting that the ringgit will continue to strengthen and they have forecasted the ringgit to hit US$1 to RM4.22 level within 2024. Just imagine within the past 12 months, there has even been predictions that ringgit may reach RM5 to US$1 and now the prediction is for RM4.22 level. Just remember, this is because the US$ is depreciating because the Federal Reserve (BNM equivalent in the US) may be deciding to cut their rates. With this expectation, US$ has started its drop for weeks now.

Article in nst.com.my. CIMB Group chief financial officer Khairul Rifaie said the bank forecasted for the local currency to trade at RM4.22 against the greenback for this year.

“We are looking at further strengthening in terms of macro backdrop, both in Malaysia and from a global perspective. We are looking at further strengthening to RM4.22 level,” he said in a media briefing here today.   

Earlier today, the ringgit surged at Friday’s opening against the US dollar, driven by good prospects of Malaysia’s economic growth and positive corporate earnings.

The ringgit closed the week at RM4.3140 against the US dollar.

Meanwhile, Khairul said the bank forecasted for the economy to grow at 5.2 per cent this year following strong gross domestic product (GDP) numbers in the second quarter this year (Q2 2024). Do read here for the full article: Article in nst.com.my.

Stay focused on investing right. Currency fluctuations will continue

I am no longer telling people alone that the ringgit is undervalued. These days, they have to believe what I said. Before this, everyone thought I was crazy. How can ringgit be rising when US$ is so strong. I repeat… if your economy has trade deficits and your currency is still strengthening, then the logic is no longer there yeah. You are not exporting, people are not importing from you, so why is your currency moving up higher? Well… US$ is a reserve currency. So, countries trade using US$. That’s why the demand is always available.

All the best to all other currencies which are always impacted by the US$. For now, the sun is shining on us.

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