Malaysia ringgit forecast further decline in second half of this year

Phnom Penh, July 19, 2023 -

Economists have forecast that the Malaysian ringgit will remain under pressure against the US dollar in the second half of this year amid a sharp rate hike by the Federal Reserve.

Hong Leong Investment Bank said in a recent report that it expects the ringgit to depreciate overall in the second half of this year to an average of 4.67 ringgit per US dollar.

In the third quarter, Hong Leong Bank forecast that the ringgit will continue to weaken as global tightening campaigns continue in the United States and advanced economies to curb inflationary pressures.

For the fourth quarter, it is expected that the ringgit will be slightly biased due to moderate inflation, a cold labor market and more clarity in domestic politics as Malaysia goes through state elections.

The Malaysian ringgit depreciated 5.9% against the US dollar in the first half.