As of November 5, 2024, the Malaysian ringgit (MYR) opened higher at 4.3700/4.3795 against the US dollar, following a 0.38% drop in the US Dollar Index (DXY) to 103.885 points after the release of US non-farm payroll data. This marks a significant recovery for the ringgit, which had previously experienced its worst month in over nine years, having dropped more than 6% against the dollar in October 2024 [b7b97182].
Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that lower US Treasury yields and potential rate cuts in the Federal Funds Rate could further support the ringgit's performance [b7b97182]. The ringgit also appreciated against other major currencies, including the British pound (5.6609/6732), Japanese yen (2.8697/8761), and euro (4.7519/7623), while trading mostly higher against ASEAN currencies, except remaining flat against the Philippine peso (7.49/7.51) [b7b97182].
Prior to this recent uptick, the ringgit had opened at 4.3675/4.3800 against the US dollar on October 30, 2024, following a slight improvement from the previous close of 4.3605/4.3640. Market sentiment remains cautious as traders await the results of the US presidential election and the Federal Open Market Committee (FOMC) meeting scheduled for November 6-7, 2024 [c3cf71ad].
In the last quarter, the ringgit had gained 14% against the US dollar, making it Asia's best-performing currency, which led to a correction in October. Financial institutions like OCBC predict that the ringgit could rise to 4.22 per dollar by year-end, while MUFG expects it to reach 4.12 [99de9ec1].
Looking ahead, the upcoming Budget 2025 is anticipated to play a significant role in influencing the ringgit's performance, as the Malaysian government aims to reduce the budget deficit to 3.8% of GDP from 4.3% in 2024 [f895629a][d4e08e5a]. Immediate support for the ringgit is identified at RM4.0728, with geopolitical conditions and economic reforms expected to be crucial in determining its future trajectory [9c8add3f][28c9b393].