Ringgit Stabilizes at 4.07 After June Slide
The Malaysian currency has recovered to 4.07 against the US dollar after hitting a multi-month low. Economists view this as a temporary external shock.
Key points
- The ringgit recovered to 4.07 against the US dollar after hitting a multi-month low of 4.14 in June.
- Economists attribute the recent slide to strong US dollar conditions and global market sentiment rather than domestic issues.
- Kenanga Research forecasts a year-end rate of 3.95, while Lee Heng Guie targets a range of 4.05 to 4.10.
The ringgit stabilized at 4.07 against the US dollar in Petaling Jaya. This level follows a recent dip that experts call a short-term blip.
The currency hit a multi-month low of 4.14 in June. External pressures, not domestic weakness, drove this temporary decline.
External Factors Drive Recent Volatility
A strong US dollar pushed the ringgit down in June. Higher US interest rates created a yield gap that attracted capital.
Geopolitical risks also contributed to the currency's weakness. Investors shifted their positions across Asian markets during this period.
Fundamentals Remain Resilient Despite Slump
Malaysia’s economy shows strong growth and contained inflation. The country remains a net energy exporter with stable policy.
Household demand and government bond demand provide structural support. These factors suggest the recent drop does not reflect true value.
Year-End Targets Show Confidence
The ringgit gained up to 10% in 2025. It traded between 4.05 and 4.07 by the end of that year.
Lee Heng Guie targets 4.05 to 4.10 for year-end. Kenanga Research predicts a stronger 3.95 rate by year-end.
