BMI, a Fitch Solutions company, expects ringgit to continue to strengthen in the second half of 2024 and early 2025, reaching RM4.40 against the US dollar by end-2025.
“The key driver will be further policy loosening worth 150 basis points (bps), which will take the United States Federal Reserve (Fed) funds rate down to 3.00 per cent by December 2025.
“But other factors will also provide underlying support to the ringgit,” it said in a statement today (Apr 8).
BMI expects the spread between policy rates and bond yields across the US and Malaysia to remain stable.
