S&P Predicts 9% Rebound in Malaysian Ringgit by End of 2024
The ringgit slid to the lowest level in 26 years this week as China’s sluggish economy hurts Malaysian exports, and some analysts have said there is a risk the currency will reach a new record low.
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S&P Global Ratings forecast a 9% rebound in the Malaysian ringgit by the end of the year, and said the weak currency doesn’t pose a risk to the sovereign rating.
“We do not see the depreciating ringgit as a risk to the sovereign rating,” said YeeFarn Phua, sovereign analyst at S&P in Singapore. “Malaysia’s external position remains strong, augmented by adequate foreign reserves and consistent current-account surpluses.”