Malaysia

Ringgit remains steady against US dollar

Image Credits: UnsplashImage Credits: Unsplash
  • The Malaysian Ringgit opened little changed against the US Dollar, reflecting market stability.
  • Monetary policies from Bank Negara Malaysia and the US Federal Reserve significantly influence the Ringgit's performance.
  • Global economic conditions, commodity prices, and tourism recovery are crucial factors for the Ringgit's future outlook.

The Malaysian Ringgit opened little changed against the US Dollar on June 7, 2024, maintaining a level of stability that has been observed in recent weeks. This performance comes amid a complex backdrop of global economic conditions and monetary policies that continue to shape the forex market.

The ringgit remained relatively stable against the US dollar at the start of the day, as investors were waiting for new information to guide their actions. This statement underscores the cautious sentiment prevailing in the market as traders and investors look for new economic data and policy signals to guide their decisions.

Factors Influencing the Ringgit's Performance

Monetary Policies

One of the primary factors influencing the Ringgit's performance is the monetary policy stance of both Bank Negara Malaysia (BNM) and the US Federal Reserve. BNM has maintained its Overnight Policy Rate (OPR) at 3%, a level that aims to balance economic growth and inflation. On the other hand, the US Federal Reserve's recent dovish pivot, where it signaled a potential pause in rate hikes, has also played a role in stabilizing the Ringgit.

Global Economic Conditions

The global economic outlook remains a significant determinant of currency performance. The International Monetary Fund (IMF) has projected a slowdown in global growth to 2.9% in 2024 from 3% in 2023. This deceleration, coupled with China's economic performance, has implications for the Ringgit. A more stable Chinese economy and renminbi are expected to reduce downward pressure on the Ringgit.

Commodity Prices and Tourism

Commodity prices and tourism are also crucial to Malaysia's economic health and, by extension, the Ringgit's strength. The stabilization of commodity prices in 2023 and the continued recovery of the tourism sector are positive signs. As Lee from OCBC Bank notes, "continued tourism recovery should help with net services balance".

Market Sentiment and Future Outlook

Market sentiment remains cautious as traders await new data and policy announcements. The Ringgit's future performance will likely hinge on several factors, including the pace and extent of US Federal Reserve rate cuts, global economic trends, and domestic economic policies.

Christopher Wong, an FX strategist at OCBC Bank, expects the Ringgit's performance to improve modestly in 2024, driven by a more stable global economic environment and supportive domestic factors. However, significant appreciation to levels seen in the past, such as RM3.80 to the US Dollar, is unlikely in the near term.

The Malaysian Ringgit's steady performance against the US Dollar reflects a period of relative stability in the forex market. Influenced by a mix of global economic conditions, monetary policies, and domestic economic factors, the Ringgit's future trajectory will depend on how these elements evolve. As the market awaits fresh leads, the cautious sentiment is likely to persist, guiding the Ringgit's performance in the coming months.


Ad Banner
Advertisement by Open Privilege
Finance World
Image Credits: Unsplash
FinanceJuly 2, 2025 at 1:00:00 PM

Beijing growth policy lures mainland fund flows back to Hong Kong

Hong Kong’s stock market rebounded from a one-week low on Wednesday, lifted by a wave of mainland capital flowing into selected sectors. At...

Finance World
Image Credits: Unsplash
FinanceJuly 2, 2025 at 10:30:00 AM

KPMG sees growth potential for Hong Kong banks through AI and shifting trade flows

While Hong Kong’s banks posted stable profits in 2024, the sector enters 2025 without obvious growth levers. Interest margins have plateaued. Loan demand...

Finance United States
Image Credits: Unsplash
FinanceJuly 1, 2025 at 10:00:00 AM

Senate moves to extend Trump’s tax cuts

On paper, the Senate’s push to extend Trump’s tax cuts feels like a 2017 flashback. The corporate rate stays at 21%. Small business...

Tax United States
Image Credits: Unsplash
TaxJune 27, 2025 at 5:30:00 PM

Republican megabill sharpens fiscal penalties for immigrant families

The Republican-backed immigration and tax legislation now moving through Congress is more than a budgetary maneuver. While framed as part of a broader...

Finance United States
Image Credits: Unsplash
FinanceJune 27, 2025 at 4:00:00 PM

Trump’s 2025 tax plan changes the rules for donating to charity

In 2025, a new tax megabill championed by former President Donald Trump is reshaping the financial calculus behind charitable giving in America. While...

Finance World
Image Credits: Unsplash
FinanceJune 27, 2025 at 1:30:00 PM

New World secures full lender approval for US$11 billion loan refinancing, sources say

The headlines point to relief: New World Development has secured full lender commitment for a HK$87.5 billion (US$11.1 billion) refinancing deal, narrowly avoiding...

Finance Malaysia
Image Credits: Unsplash
FinanceJune 27, 2025 at 11:00:00 AM

How EPF foreign worker contribution in Malaysia signals a shift in labor costs

Starting October 2025, all foreign workers in Malaysia—excluding domestic helpers—will be enrolled in the Employees Provident Fund (EPF) scheme. Both employers and workers...

Finance World
Image Credits: Unsplash
FinanceJune 27, 2025 at 10:00:00 AM

Hong Kong China cross-boundary payment system reveals capital strategy shift

At first glance, Payment Connect appears innocuous—a streamlined solution for consumers moving money between Hong Kong and mainland China. Twelve banks, six from...

Finance United States
Image Credits: Unsplash
FinanceJune 27, 2025 at 9:30:00 AM

The economic gamble inside the White House tax plan

The Biden administration is selling its latest tax bill as a fiscally responsible measure—claiming that it will pay for itself through economic growth,...

Finance Malaysia
Image Credits: Unsplash
FinanceJune 26, 2025 at 8:00:00 AM

FBM KLCI market sentiment shift signals strategic repricing of risk

Bursa Malaysia ended higher this week, with the FBM KLCI posting a 0.36% gain amid stronger trading volumes and regional market optimism. On...

Finance World
Image Credits: Unsplash
FinanceJune 25, 2025 at 10:00:00 AM

Hong Kong’s IPO boom delivers 30%+ returns for investors

Hong Kong’s stock market has found an unlikely pulse in 2025—and it’s coming from initial public offerings. In the first half of the...

Finance World
Image Credits: Unsplash
FinanceJune 24, 2025 at 1:00:00 PM

Hong Kong stock rally amid ceasefire boosts market sentiment

A fragile geopolitical pause is all it took to spark the Hang Seng’s strongest morning in six weeks. On Monday, Hong Kong stocks...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege