Deputy Finance Minister Lim Hui Ying projects that the Malaysian ringgit will strengthen against the US dollar in the last quarter of 2024. Finance Minister II Datuk Seri Amir Hamzah Azizan has set a target for the ringgit to be traded at RM4.50 against the US dollar by the end of the year. This positive outlook for the ringgit comes as Malaysia recorded an approved investment of RM83.7 billion for the first quarter of this year, marking a 13 percent year-on-year increase. It is worth noting that the ringgit has been the only regional currency to strengthen by 1.4 percent against the US dollar since February 26, 2024. Factors such as commodity prices, financial market sentiment, and economic growth projections influence the ringgit's movements. Malaysia's success in attracting foreign investments and growing investor confidence are expected to support the strengthening of the ringgit.
According to a report by BMI, the ringgit is likely to appreciate substantially in the fourth quarter of 2024 and reach 4.55 against the US dollar by the end of the year. The forecast is based on positive economic indicators and the expectation of a global economic recovery. The ringgit's appreciation is also attributed to the country's strong export performance and the increase in oil prices. The report suggests that the ringgit's appreciation will benefit the Malaysian economy by reducing import costs and boosting consumer purchasing power. However, risks such as inflation and geopolitical tensions could affect the currency's performance. [e726a72c] [e5671555] [bbce3b3b] [7bfbdbac]