Market Outlook: Malaysian Ringgit May Face Pressure in Q1 2025

Foreks - Kenanga economists predict that the Malaysian ringgit may come under pressure in the first quarter of 2025 amid ongoing inflation concerns in the U.S. under the Trump administration, which could increase monetary policy uncertainty and keep the dollar strong. In a note published by Kenanga economists, it was stated that the ringgit might end 2024 slightly stronger than expected at 4.567 against the dollar, with the expectation that the exchange rate could trade around 4.50-4.60 in early 2025, depending on Trump's policy decisions. Economists also added that strong dollar demand will likely outweigh internal factors supporting the ringgit. Kenanga fixed the short-term resistance for USD/MYR at 4.489 and support at 4.469. For the upcoming year, the exchange rate is projected to be at 4.571 in the first quarter and 4.530 in the second quarter. Currently, USD/MYR is trading at 4.4818, up 0.3%.