KUALA LUMPUR: MBSB Investment Bank Bhd (MBSB IB) expects the ringgit to continue appreciating in 2025, projecting an average rate of around RM4.30 against the US dollar, compared to RM4.56 last year.
In a note today, MBSB IB said the positive outlook was due to recent shifts in economic data, with a bias towards further strengthening and potentially ending the year stronger than its current projection of RM4.25.
"We continue to foresee continued appreciation bias for the ringgit, supported by the expected narrowing of the interest rate differentials.
"This is based on the assumptions that the United States (US) Federal Reserve (Fed) will implement additional one to two interest rate cuts this year, while Bank Negara Malaysia (BNM) is expected to keep the overnight policy rate (OPR) steady at 2.75 per cent,” it said.
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