Ringgit Rebound Set to Ride on Recovering Exports, Fed Rate Cuts

  • Ringgit to be among top beneficiaries of US rate cuts: BNM
  • Correlation between yuan and ringgit has declined meaningfully

Ringgit banknotes.

Photographer: Samsul Said/Bloomberg
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The Malaysian ringgit is set to extend gains into the remainder of the year as exports recover and the Federal Reserve eventually pivots to interest rate cuts.

The ringgit has been the top performer in Asia against the greenback behind the Hong Kong dollar this quarter, and is forecast to strengthen to 4.65 by the end of 2024, according to a median of economists surveyed by Bloomberg. The ringgit was little changed at 4.7215 as of 2.25 p.m. Singapore time on Friday.